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a. Is the bank solvent (Yes/No) The Chowder Bank of Boston Assets Liabilities and Net Worth Reserves 10,000,000 Demand deposits ####### Fed Funds sold: 12,000,000

a. Is the bank solvent (Yes/No)
The Chowder Bank of Boston
Assets Liabilities and Net Worth
Reserves 10,000,000 Demand deposits #######
Fed Funds sold: 12,000,000 Time deposits 50,000,000
Loans: ####### Fed funds bought: 10,000,000
Office building: 5,000,000
Capital (Net Worth): 7,000,000
Total ####### Total #######
b. If the value of Loans declines by 8%, is the bank still solvent? (Yes/No)

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