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Consider a bank with the following balance sheet: Assets Liabilities Reserves $100 million Deposits $900 million Securities $50 million Bank capital $50 million Loans $800

Consider a bank with the following balance sheet:

Assets

Liabilities

Reserves

$100 million

Deposits

$900 million

Securities

$50 million

Bank capital

$50 million

Loans

$800 million

If the bank has to write off $10 million in loans and customers withdraw $40 million in checkable deposits, how would this affect the banks balance sheet? Would the bank be insolvent? Would the bank be short of reserves if the required reserve ratio is 10%?

please i want direct answer with no explaination

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