a. Felix Bank started its first day of operations with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $50 million in commercial loan. If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves.

b. Felix Bank decides to invest $45 million in 30-day T-bills. What does the balance sheet look like?

c. After a week, deposits fall by $6 million. What does the balance sheet look like? Are there any problems?

d. Propose one solution to solve the problem identified in question c. What does the balance sheet look like after you implement your solution?

To get full credit, you must DRAW THE BALANCE SHEET AND FILL IN THE ASSETS AND LIABILITIES ITEMS REPORTED IN THE QUESTION