Balance sheet of High Capital Bank Capital Bank Assets $ Liabilities Balance sheet of Los Liabilities $ Assets $ A $ Reserves 8 m Deposits 90 Reserves 10 m Deposits 94 m Loans 92 m Equity Capital Loans 10 90 m Equity Capital 6 m 1. (1 point) what is the capital ratio of the High capital bank and the Low capital bank respectively? 2. (1 point) If both banks suffer a bad loan loss of $5 million, how do their balance sheets change? Show the new balance sheets for both banks after the loss below. 3. (1 point) Does the amount of reserves affect anything? Explain why or why not.