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please answer question 9 using the info from the already answered question 8. 8). Consider two banks: Bank A Balance Sheet Assets Reserves Loans $60

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please answer question 9 using the info from the already answered question 8.
8). Consider two banks: Bank A Balance Sheet Assets Reserves Loans $60 million $640 million Liabilities Deposits $600 million Capital $100 million Bank B Balance Sheet Assets Reserves Loans $90 million $610 million Liabilities Deposits S600 million Capital $100 million Assume the Required Reserve Ratio is 10% as mandated by the Fed. Both banks are free to keep required reserves in accordance with their respective bank policies. If both banks suffer a $10 million deposit outflow, which bank is in a better shape now, Bank A or Bank B? Why? Explain your answer by showing and using both banks' balance sheet after the deposit outflow. (6 points) Bank A Assets Liabilities Reserves $60 million Deposits $590 million Loans $640 million Capital $100 million Bank B Assets Liabilities Reserves $90 million Deposits $590 million Loans $610 million Capital $100 million Required Reserve Rate = 10% Reserve required = 10%*Deposits For bank A: Reserve required = 10%*590 = $59 million Reserves = $60 million For bank B: Reserve required = 10%*590 = $59 million Reserves = $90 million Since reserves available with Bank B are more than the required, thus, bank B is in better position 9). The problem bank (Bank A or Bank B) must maintain a 10% required reserve ratio. Identify the bank that is in trouble from Question 8. Now suppose the problem bank wanted to increase its reserves by borrowing from the Federal Reserve System. Use the balance sheet of the problem bank from the previous question to show the adjustment in the balance sheet after the bank has borrowed from the Federal Reserve. (4 points)

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