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An FI is planning to issue $100 million in BB rated commercial loans. The FI will finance the loans by issuing demand deposits. What is

An FI is planning to issue $100 million in BB rated commercial loans. The FI will finance the loans by issuing demand deposits.

What is the minimum amount of capital required under Basel III?

What is the minimum amount of demand deposits needed to fund this loan assuming there is a 10 percent average reserve requirement on demand deposits?

Show a simple balance sheet with total assets, total liabilities, and equity if this is the only project funded by the bank.

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