9. LaunchPad . Jimmy Paul Miller starts his own bank, called JPM. As owner, Jimmy puts in $2,000 of his own money. JPM then borrows $4,000 in a long-term loan from Jimmy's uncle, accepts $14,000 in demand deposits from his neighbors, buys $7,000 of U.S. Treasury bonds, lends $10,000 to local businesses to finance new investments, and keeps the remainder of the bank's assets as reserves at the Fed. a. Show JPM's balance sheet. What is JPM's leverage ratio? b. An economic downturn causes 5 percent of the local businesses to declare bankruptcy and default on their loans. Show JPM's new bal- ance sheet. By what percentage does the value of JPM's assets fall? By what percentage does JPM's capital fall?7. To increase tax revenue, the U.S. government in 1932 imposed a 2-cent tax on checks written on bank account deposits. (In today's dollars, this tax would amount to about 34 cents per check.) a. How do you think the check tax affected the currency-deposit ratio? Explain. b. Use the model of the money supply under fractional-reserve banking to discuss how this tax affected the money supply.c. Many economists believe that a falling money supply was in part responsible for the severity of the Great Depression of the 1930s. From this perspective, was the check tax a good policy to implement in the middle of the Great Depression