Question
As of today, Capital One bank currently holds: $200M in transaction deposits $20M in Banks capital $30M in Investment Securities $160M in Loans $20M in
As of today, Capital One bank currently holds: $200M in transaction deposits $20M in Banks capital $30M in Investment Securities $160M in Loans $20M in total Bank Reserves. The bank manager just noticed that one of the customers just withdrew $20M out of the checkable (transaction) deposits. If we assume that that entire amount of the transaction deposits is a subject to the legal 10% reserve requirement, please select from the list below the best course of the banks action to manage its liquidity and meet its legal Reserves requirements.
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