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5.(2 points) The bank you manage has the following balance sheet: Assets Liabilities Reserves $ 75 million Deposits $500 million Loans $525 million Bank capital
5.(2 points) The bank you manage has the following balance sheet: Assets Liabilities Reserves $ 75 million Deposits $500 million Loans $525 million Bank capital $100 million The bank has a required reserve ratio of 10 percent. If the bank experiences a deposit outflow of $50 million, what actions could you take to meet your bank's reserve requirement? 6. (4 points) The bank you manage has the following balance sheet: Assets Liabilities Reserves $100 million Deposits $500 million Loans $500 million Bank capital $ 100 million a. The bank has a required reserve ratio of 10 percent. If the bank experiences a deposit outflow of $50 million, what actions could you take to meet your bank's reserve requirement? b. Which initial balance sheet would a bank manager rather have before the $50 million deposit outflow: the one in question 5 or the one in question 6? Explain
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