Bank of America Assets Liabilities and Stockholder's Equity Liabilities $1,400,000 Deposits $2,000,000 Mortgage Backed Securities $1,000,000 Loan Stockholder's Equity $1,600,000 Refer to the balance sheet above Sunnase that Bank of America fonder the market with its mort Stockholder's Equity $1,600,000 Refer to the balance sheet above. Suppose that Bank of America flooded the market with its mortgage backed securities (MBS) to acquire central bank reserves. What issue can this pose for Bank of America? This could force Bank of America to increase their deposit account interest rates to attract additional depositors in order to acquire central bank reserves from other banks By flooding the market with mortgage backed securities (MBS) you send a signal to other commercial banks and depositors that you are insolvent. This can can cause the other commercial banks and depositors to increase their deposits in Bank of America. Dramatically increasing the supply of mortgage backed securities (MBS) in the market can dramatically reduce their value, which can create solvency issues for Bank of America This sends a signal to depositors at Bank of America that the bank has solvency issues which forces Bank of America to reduce their deposit rates to attract additional depositors D Question 35 4.74 pts Bank of America Assets Liabilities and Stockholder's Equity Liabilities $1,400,000 Deposits $2,000,000 Mortgage Backed Secunities $1,000,000 Loan Stockholder's Equity $1,600,000 . " Ukholder's Equity $1,600,000 Refer to the balance sheet above. What is a viable way for Bank of America to acquire central bank reserves and meet its liquidity needs? Lower their deposit account interest rates to attract additional depositors in order to acquire central bank reserves from other banks O None of the available answers is correct Borrow them in the federal funds market Make additional loans to acquire central bank reserves D Question 36 4.72 pts Use the 2 balance sheets, which are the end result of all the transactions for the home buyer and Wells