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A bank has the following assets: Assets liabilities Reserves $15 million Deposit $150 million Loans $150 million Borrowed funds $35 million Securities $50 million Bank

  1. A bank has the following assets:

Assets

liabilities

Reserves $15 million

Deposit $150 million

Loans $150 million

Borrowed funds $35 million

Securities $50 million

Bank capital $30 million

  1. If the required reserve rate is 10% and excess reserve is 0.
  2. How do you describe the general financial position of this bank ?

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