Ducks Bank is a commercial bank in Oregon. The initial balance sheet is as follows. The bank is subjected to the required reserves ratio of 10%. (Unit: million USD) Assets Liabilities+Capital Reserves: $94 Deposits: $400 Securities: $206 Borrowings: $100 Loans: $300 Capital: $100 (1) On the asset side, which type of assets generates the highest income to Ducks Bank? (1 point)

(2) Fill in the blank: Ducks Bank can stay solvent as long as the total amount of loan loss does not exceed million dollars. (1 point)

(3) Update the balance sheet after a deposit out?ow of $80 million occurs. (4 points) To complete the following balance sheets, do NOT show changes of values for each item. Instead, you should write levels of updated values for each item. For example, an item starts with value $100. If you think its value decreases by $10, write down $90 instead of -$10; if you think its value increases by $10, write down $110, instead of +$10; if you think its value isn't changed, write down $100. Assets Liabilities+Capital Reserves: Deposits: Securities: Borrowings: Loans: Capital: (5) After a deposit out?ow of $80 million occurs, ?nd the amount of reserves that Ducks Bank needs to acquire to meet the required reserve regulation. (2 points)

QUESTION 4: 8 POINTS Ducks Bank is a commercial bank in Oregon. The initial balance sheet is as follows. The bank is subjected to the required reserves ratio of 10%. (Unit: million USD) Assets Liabilities+ Capital Reserves: $94 Deposits: $400 Securities: $206 Borrowings: $100 Loans: $300 Capital: $100 (1) On the asset side, which type of assets generates the highest income to Ducks Bank? (1 point) (2) Fill in the blank: Ducks Bank can stay solvent as long as the total amount of loan loss does not exceed million dollars. (1 point) (3) Update the balance sheet after a deposit outflow of $80 million occurs. (4 points) To complete the following balance sheets, do NOT show changes of values for each item. Instead, you should write levels of updated values for each item. For example, an item starts with value $100. If you think its value decreases by $10, write down $90 instead of -$10; if you think its value increases by $10, write down $110, instead of +$10; if you think its value isn't changed, write down $100. Assets Liabilities+Capital Reserves: Deposits: Securities: Borrowings: Loans: Capital: (5) After a deposit outflow of $80 million occurs, find the amount of reserves that Ducks Bank needs to acquire to meet the required reserve regulation. (2 points)