Martin Bank is holding $3 million in reserves, $12 million in government bonds and $10.6 million in low risk mortgage loans. Out of the $25 million in customers' deposits, Martin holds $15.1 million in the form of certificates of deposit.

• Draw a T-Account balance sheet for Marin Bank.
• Describe the formula for determining Martin Bank's net worth.
• Given the supplied information, determine Martin Bank's net worth. (Show your work.)
• Identify the criteria for classifying a bank as healthy or unhealthy.
• Is Martin Bank healthy or unhealthy? Explain.
• What changing economic factors could cause Martin bank to go bankrupt?
• What steps could Martin Bank take to establish health, maintain current health, or increase its health?