Please help the banker to deal with the daily operations of Bank of America for three days, please show both required reserves and excess reserves in your analysis. (1) Bank of America raise capital through stocks with $40 million in capital. A total of $250 million in checkable deposits is received in the first day. The bank lends $120 million in mortgage loans and 50 million to commercial loans. The bank also purchases 30 -day T-Bills for 35 million. If required reserves are 10%, what does the bank balance sheet look like? (5 marks) (2) What is the leverage ratio of Bank of America according to Basel Accord? Is Bank of America well capitalized? ( 5 marks) (3) In the second day Bank of America decides to invest $24 million more in 30-day T-bills. The T-bills are currently trading at $5,016 (including commissions) for a \$4,830face value instrument. How many T-bills do they purchase? What does the balance sheet look like? (5 marks) (4) In the third day, there are 20 million deposits and 90 million withdraws. What does the balance sheet look like? How Bank of America could deal with such case? (5 marks) (5) In the third day, if Checkable Deposits remains (i.e., no 20 million deposits and 90 million withdraws as mentioned in the last question), but there is a default of the loans of 45 million? What does the balance sheet look like? What might happen to Bank of America? (5 marks) Please help the banker to deal with the daily operations of Bank of America for three days, please show both required reserves and excess reserves in your analysis. (1) Bank of America raise capital through stocks with $40 million in capital. A total of $250 million in checkable deposits is received in the first day. The bank lends $120 million in mortgage loans and 50 million to commercial loans. The bank also purchases 30 -day T-Bills for 35 million. If required reserves are 10%, what does the bank balance sheet look like? (5 marks) (2) What is the leverage ratio of Bank of America according to Basel Accord? Is Bank of America well capitalized? ( 5 marks) (3) In the second day Bank of America decides to invest $24 million more in 30-day T-bills. The T-bills are currently trading at $5,016 (including commissions) for a \$4,830face value instrument. How many T-bills do they purchase? What does the balance sheet look like? (5 marks) (4) In the third day, there are 20 million deposits and 90 million withdraws. What does the balance sheet look like? How Bank of America could deal with such case? (5 marks) (5) In the third day, if Checkable Deposits remains (i.e., no 20 million deposits and 90 million withdraws as mentioned in the last question), but there is a default of the loans of 45 million? What does the balance sheet look like? What might happen to Bank of America
