Best Bank has the following balance sheet. The required reserve ratio is 10 % Liabilities Deposits Borrowing Bank capital 1. Assets Reserves 180,000 22,000 80,000 460,000 358,000 Securities Loans Find the amount of bank capital The bank wants to lower the capital/asset ratio. Why may a bank want to lower this ratio? (ii) (ii) (iv) What can a bank do to lower the capital/asset ratio of the bank? The bank loses $30,000 on loan defaults. Show the effect on the bank's balance sheet using a T-account (v) How is the situation of this bank after the loan defaults? Best Bank has the following balance sheet. The required reserve ratio is 10 % Liabilities Deposits Borrowing Bank capital 1. Assets Reserves 180,000 22,000 80,000 460,000 358,000 Securities Loans Find the amount of bank capital The bank wants to lower the capital/asset ratio. Why may a bank want to lower this ratio? (ii) (ii) (iv) What can a bank do to lower the capital/asset ratio of the bank? The bank loses $30,000 on loan defaults. Show the effect on the bank's balance sheet using a T-account (v) How is the situation of this bank after the loan defaults