A bank currently has $150,000 in checkable deposits and $15,000 in reserves. The required reserve ratio is 10%. Suppose there is a deposit outflow for $5,000 due to unexpected deposit withdraws.

(i)Does the bank still have enough reserves to meet 10% reserve requirement?

(ii) Assume a fed funds rate of 0.25%. What would be the cost of compliance of required reserve in dollar amount for this bank?