2. Financial Accounting a. Suppose First National Bank has the following assets on their balance sheet (in millions). Give and explain a reason for and against First National Bank's decision to hold this many stocks, corporate bonds, and commodities as assets? Required Reserves Excess Reserves Mortgage Loans Corporate Loans Stocks Commodities $10 $5 $20 $15 $25 $25 b. If the housing market suddenly crashed, what type of change would you see in their balance sheets? Would First National be better off using a mark-to-market accounting system or the historical-cost system? c. If the price of commodities suddenly increased sharply, would First National be better off using a mark-to-market accounting system or the historical-cost system? d. What do your answers to parts (b) and (c) tell you about the tradeoffs between the two accounting systems?