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5. Consider a commercial bank with the following balance sheet: Cash $7m Deposits $74m Gross Loans 73m Equity 6m Suppose the bank experiences $10 million

5.

Consider a commercial bank with the following balance sheet:

Cash $7m Deposits $74m

Gross Loans 73m Equity 6m

Suppose the bank experiences $10 million dollar withdrawal. What will be the new values of the balance sheet accounts?

Select one:

a. Deposits are now $71 m

b. New cash balance is $0

c. Equity is now $0

d. Equity is now $0 & New cash balance is $0

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