Leverage: For the following question, assume the that bank's balance sheet has only 3 categories: assets, liabilities, and capital. Suppose a bank has $5,000,000 in capital, and that it's leverage ratio is 20. (a) Draw the bank's balance sheet. How much assets and liabilities does this bank have? (b) What is the bank's capital ratio? (c) Suppose that after one week, the bank's assets depreciate by 3.5%. How much capital does the bank have left, and is it solvent? If the bank is insolvent, by how much is it insolvent? (d) Suppose instead that after one week, the banks assets depreciate by 6%. How much capital does the bank have left, and is it solvent? If the bank is insolvent, by how much is it insolvent? (e) Describe the relationship between leverage, expected profits, and fi- nancial fragility. You may find it helpful to answer this question by using examples of balance sheets with different leverage ratios, al- though this is not required for a complete answer. (1-2 sentences is fine)