a) (4 points) The following balance sheet belongs to Rock Solid Bank in Laconia. The Laconia central bank lowers the minimum Capital Adequacy Ratio (CAR) from 20% to 10%. The Required Reserve Ratio (RRR) is still 0%. The currency in Laconia is the krona. What can the bank do to increase its profits? Assets Liabilities Loans 750 Capital 150 Deposits 600 b) (4 points) A borrower defaults on his loan and the bank now has 50 krona worth of non-performing loans (NPL). Assuming the bank had followed your suggestion to maximise profit in part (a), show what would happen immediately to the bank's balance sheet and why it would no longer be in compliance with banking regulation. c) (17 points) What are the two actions that the bank can take to bring itself to be in compliance with banking regulation? Show the balance sheet in each of the action. Which action would the bank take