In the "Choice and Consequence" box on "Asset Price Fluctuations and Bank Failures," the authors discuss the relationship between the prices of things like oil and real estate and the solvency of lending institutions like banks. Consider the two scenarios below. For each of the following balance sheets, supply the missing entries and then answer the questions that follow. Assume that Securitas Bank is a large bank in the country of Hyponatremia. The bank's only assets and liabilities at the beginning of the year are given in the following balance sheet: Securitas Bank Balance Sheet Assets Reserves and cash equivalents Long-term investments $ $ $ 34 510 Liabilities and Stockholders' Equity Demand deposits $ 340 544 Borrowing from other banks Stockholders' equity $ 85 $ 119 Total assets Philopericulum Bank is another large bank whose only assets and liabilities are summarized in its balance sheet: The bank's only assets and liabilities at the beginning of the year are given in the following balance sheet: Philopericulum Bank Balance Sheet Assets Liabilities and Stockholders' Equity Reserves and cash equivalents Long-term investments $ 30 Demand deposits $ 600 $ 900 Total assets $ 930 Borrowing from other banks Stockholders' equity $ 300 $ 30 Assume now that due to an economic downturn, the value of each bank's long-term investments declines by 20%. Show the resulting situation on the Securitas Bank balance sheet: Securitas Bank Balance Sheet Assets Liabilities and Stockholders' Equity Reserves and cash equivalents Long-term investments $ 34 Demand deposits 720 Borrowing from other banks Total assets 754 Stockholders' equity $ $ 340 85 329