2. Currency Mismatches on Bank Balance Sheets Consider an economy with the following aggregate balance sheet of the banks in its jurisdiction, all valuated millions of Lira, which is the local currency. However, items with FX in parenthesis are denominated in US dollars. The Lira is currently 5 Lira to 1 US dollar. Assets Liabilities Domestic currency loans 1,700 Foreign currency loans (FX) Other domestic assets 400 1,000 Domestic currency deposits 1,400 Foreign currency deposits 2,000 XXXXX Other foreign assets (FX) 500 a. Fill in the missing item XXXXX and the missing value LLLL b. What share of the banking system's assets are denominated in foreign currency? What share of the banking system's deposits are denominated in foreign currency. c. Explain why mismatches on a bank's balance sheet pose risks. How does your answer in part (b) reflect such a risk? d. What is the leverage ratio of the country's banking system? e. Rewrite the banking system's balance sheet if the Lira declines to 10 Lira to 1 dollar. f. What might happen in this economy if the value of the local currency changes in such a way?