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For questions 2 and 3, consider the following simplified bank balance sheet: Cash 100 Deposits 890 Loans 900 Equity 110 Total 1000 Total 1000 2.
For questions 2 and 3, consider the following simplified bank balance sheet: Cash 100 Deposits 890 Loans 900 Equity 110 Total 1000 Total 1000 2. Adjust the balance sheet to reflect what happens when $100 of deposits leave the bank: Cash Loans Totale Deposits Equity Total 3. What if instead of $100 of deposits leaving the bank, $125 of deposits left the bank? Assume the bank has a 20% loss on loans it sells on short notice. Cashe Loanse Total Deposits Equity Total
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