Consider the partial balance sheets of Bank A and Bank B. Suppose that reserve requirements are 10 percent of transaction deposits and both banks have equal access to the interbank market and funds from the Federal Reserve Assets Reserves Loans Securities Bank A Balance Sheet (in millions) Liabilities $50 Deposits $200 $920 Borrowing $600 $250 Bank Capital $100 Bank B Balance Sheet (in millions) Liabilities $30 Deposits $920 Borrowing $600 550 Bank Capital $100 Assets Reserves Loans Securities 5200 a. Which bank appears to have greater liquidity risk? Bank A Bank B b. Which bank appears to face a greater risk of default? Bank A Bank B