Consider a bank that has $70 of demand deposits outstanding. The bank has used the funds it received from issuing the deposits in the past to purchase long-term investments that are now worth $105 (but will pay off at some date in the future). This means that the bank's balance sheet currently looks like the following: Balance sheet of a Bank ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Long-Term Investments 105 Demand Deposits 70 Total Liabilities 70 Stockholders' Equity 35 Total Assets 105 Total Liabilities + Stockholders' Equity 105 1. (5 points) Suppose a customer deposits $25 of cash into her checking account at the bank and the bank holds this in cash. Write the bank's balance sheet after this change. 2. (5 points) Suppose instead when the customer deposits into her checking accounting the bank uses the new $25 of deposits to make a loan of $25. Show how the bank's balance sheet changes. 3. (5 points) Starting with the balance sheet printed at the beginning of the question, suppose a borrower makes a loan payment of $25. Assume that $10 of the loan payment represents interest on the balance of the loan and $15 represents repayment of part of the principal of the loan. Show how the bank's balance sheet changes. 4. (5 points) Suppose now that a firm to which the bank was lending money goes bankrupt. The value of the outstanding loan to the bankrupt firm was $10. The bank is able to collect only $5 dollars from the liquidation of the assets (real estate properties + machines) of the bankrupt firm. Show how the bank's balance sheet changes