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Consider a bank with the following balance sheet: Assume that required reserves are 8%. In order to avoid insolvency, regulators decide to provide the bank
Consider a bank with the following balance sheet: Assume that required reserves are 8%. In order to avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. Assume that bad news about mortgages is featured in the local newspaper, causing a bank run. As a result, $20 million in deposits is withdrawn. Show the effects of the capital injection and bank run on the balance sheet. (Round your responses to the nearest whole number.)
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