2. Banks and Balance Sheets a. The Bank you own has the following bank sheet. Suppose you witness an outflow in deposits of $50 million with a required reserve ratio of 12%, what would be an appropriate line of action to take. Assets Liabilities Reserves $ 75 million Deposits $500 million Loans $525 million Bank capital $100 million 6. A bank chooses to increase the amount of capital it holds, describe one advantage and one disadvantage of this decision. C. NewBank started its first day of operations with $6 million in capital. A total of $100 million in checkable deposits is received. The bank makes a $25 million commercial loan and lends another $25 million in mortgage loans. If required reserves are 8%, what does the bank balance sheet look like? d. What are the costs and benefits of a too-big-to-fail policy