A bank has $200 million in deposits, $700 million in loans, $100 million in securities, $700 million in borrowings and $100 million in capital. Assume that the required reserve ratio on deposits is 10%. Answer the following questions: a) What are the required and excess reserves of the bank? Show the balance sheet of the bank. b) What is the leverage ratio of the bank? Use both Mishkins and Mankiws definitions and explain what your answers mean. Is this bank well capitalized? Show your work. c) Suppose that there is a deposit outflow of $50 million from the bank. Show the new balance sheet of the bank. d) Suppose that one of the financial institutions that was lending to the First National bank needs to recall its loan of $150 million. Show the new balance sheet of the First National bank. e) Suppose that the Fed conducts an open market purchase in the amount of $100 million from this bank. Show the new balance sheet of this bank. Explain any changes to the monetary base and the money supply in the economy.

Only answer c,d,e, thanks