Consider a recently founded economy, Del Grifith Park, whose politicians are debating economic policies to implement. They are first considering whether or not to found a central bank and issue their own currency. Right now, they use US dollars for all their transactions and thus are subject to monetary policy dictated by the Federal Reserve. Banks in this economy like to hold reserves when interest rates are low, and dislike holding reserves when interest rates are high, and can borrow and lend with US banks at the US Federal Funds Rate. The government of Del Griffith Park issues debt to finance its operations that is indexed to the US federal funds rate. E) There is one bank in the economy, the Del Griffith Banking and Shower Curtain Rings, with the following balance sheet. Assets Reserves: $60B Mortgage-Backed Securities: $500B Corporate Bonds: $200B Liabilities Deposits: $600B Repos: $100B Bank Capital: $60B When the economy enters the downturn, depositors worry that they will be unable to withdraw their money. All of the bank's depositors show up and demand the bank return their deposits. If the bank is unable to cover all of their deposits with their cash on hand, they can sell their Mortgage Backed Securities at 75% value and their Corporate Bonds at 90% of their value. Show what happens to this bank if bank managers try to limit any losses to the smallest amount possible. f) These same politicians are considering implementing deposit insurance to prevent the eftects of this downturn. Show in the same table what happens to the bank's assets and liabilities when deposit insurance is available to depositors. However, the deposit insurance requires insurance fee. If the case (c) will happen with probability 0.5, how much is the maximum insurance fee which is acceptable for the bank