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8). Consider two banks: Bank A Balance Sheet Assets Reserves Loans $60 million $640 million Liabilities Deposits $600 million Capital. $100 million Bank B Balance

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8). Consider two banks: Bank A Balance Sheet Assets Reserves Loans $60 million $640 million Liabilities Deposits $600 million Capital. $100 million Bank B Balance Sheet Assets Reserves Loans $90 million $610 million Liabilities. Denosits. $600 million Capital $100 million Assume the Required Reserve Ratio is 10% as mandated by the Fed. Both banks are free to keep required reserves in accordance with their respective bank policies. If both banks suffer a $10 million deposit outflow, which bank is in a better shape now, Bank A or Bank B? Why? Explain your answer by showing and using both banks' balance sheet after the deposit outflow. (6 points)

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