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5. Examine the simple balance sheet of the bank in Question #3 on p. 212. Calculate its equity multiplier (see p. 199). What would happen

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5. Examine the simple balance sheet of the bank in Question #3 on p. 212. Calculate its equity multiplier (see p. 199). What would happen to EM if the same bank received a new deposit of $200 million? How would this change your expectation of the bank's ROE (p. 199)? Explain. The bank you own has the following balance sheet: Assets Liabilities Reserves $ 75 million Deposits $500 million Loans $525 million Bank capital $100 million mean hy "Ton him to fail? Re carefufor whom is a hank TRTE? 5. Examine the simple balance sheet of the bank in Question #3 on p. 212. Calculate its equity multiplier (see p. 199). What would happen to EM if the same bank received a new deposit of $200 million? How would this change your expectation of the bank's ROE (p. 199)? Explain. The bank you own has the following balance sheet: Assets Liabilities Reserves $ 75 million Deposits $500 million Loans $525 million Bank capital $100 million mean hy "Ton him to fail? Re carefufor whom is a hank TRTE

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