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If $200,000 worth of the bank's loans default, show the bank's balance sheet immediately after the default. Assets - Reserves $500,000 Bonds - 100,000 Loans
If $200,000 worth of the bank's loans default, show the bank's balance sheet immediately after the default.
Assets - Reserves $500,000
Bonds - 100,000
Loans = 900,000
Liabilities -
Checking Deposits -$1,000,000
Bank Capital =$500,000
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