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2. Suppose you were the manager of when]: with the following balance sheet Bank Balance Sheet (in millions) Assets liabilities Reserves 331'.) Checkable Deposits sens
2. Suppose you were the manager of when]: with the following balance sheet Bank Balance Sheet (in millions) Assets liabilities Reserves 331'.) Checkable Deposits sens Securities 515'.) Time Deposits sens Loam $32!] Borrowings 151 [It] You are required to hold 10 percent of checkable deposits as reserves. If you were faced with unexpected withdrawals of $3!) million from 1in1e deposits, would you rather. Option A; Draw down ll] million of excess reserves and borrow $2!) million from other banks? Option B: Draw down $10 million of excess reserves and sell secuiiiies of $2!) million? Explain your choice
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