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Consider a bank with the following balance sheet: ____________________________.____.. l Assets Liabilities l Required reserves $10 million Checkable deposits $130 million i Excess reserves $22

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Consider a bank with the following balance sheet: ____________________________.____.. l Assets Liabilities l Required reserves $10 million Checkable deposits $130 million i Excess reserves $22 million Bank capital - $18 million ' Loans $80 million l ______________._ Assume that required reserves are 8%. In order to avoid insolvency, regulators decide to provide the bank with $27 million in bank capital. Assume that bad news about mortgages is featured in the local newspaper, causing a bank run. As a result. $25 million in deposits is withdrawn.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.) i Assets Liabilities 1i Required reserves $E| million Checkable deposits 3D million i Excess reserves $1] million Bank capital $13 million i Loans 33D million

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