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7). Bank A has the following balance sheet: Assets (RM) Liabilities (RM) Reserve 75 million Deposit 500 million Securities 25 million Loans from other banks

7). Bank A has the following balance sheet:

Assets (RM) Liabilities (RM) Reserve 75 million Deposit 500 million Securities 25 million Loans from other banks 25 million Loan 500 million Bank capital 75 million

If the bank experiences a deposit outflow of RM50 million and the required statutory reserve ratio on deposits is 10%, what action should Bank A take? (10 marks)

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