Help Last edit was 4 minutes ago + BIUA CD hali . 13 EE-EX 4 S 2 3 5. Bank Leverage (15 points). Suppose Bill Gates decides to open his own bank called ABC. As owner, Bw Gates puts in $1,000 of his own money ABC then borrows $2.000 in a long-term loan, accepis $7.000 is demand deposits, buys $3.500 of U.S. Treasury bonds, lends $5.000, and keeps the remainder of the bank's assets as reserves at the Fed. a.) Fal in the missing values below to construct ABC's balance sheet What is ABC's leverage ratio? Assets Loans, S Securities, Reserves, S Liabilities Deposits, Debt, S Capital, b) suppose en economic downtum caused 10 percent of borrowers to default on their toons. Fa in the missing values below to construct ABC's new balance sheet Assets Loans, Securities, $ Reserves, 5 Liabilities Deposits, $ Debt, $ Capital, c.) Suppose that, prior to the downturn, the govement puts in place a 50% capital requirement. Assume Bu Gebes is not willing to make any further investment in ABC. Fill in the missing values below to show how ABC adjusts ts balance shoot to meet the capital requirement. Also, calculate ABC's new leverage ratio. (Note: The requirement is imposed before the downturn. That is, the adjustment will be made to the balance sheet from partb.)) Assets Loans, S Securities, Reserves, S Liabilities Deposits, S Debt, s Capital, 23