PLEASE PROVIDE SHORT YET UNDERSTANDABLE 2-5 SENTENCE ANSWER THE FOLLOWING QUESTIONS

a. Consider a bank that has $5M in equity, and $100M in assets. Draw the banks balance sheet and calculate its leverage.

b. Consider a bank that has $10M in equity, and $100M in assets. Draw the banks balance sheet and calculate its leverage.

c. Suppose that the value of assets drops by 2%. Calculate the banks new level of leverage. How many assets does the bank need to sell in this case to restore its previous level of leverage? From the analysis above, provide a reason why regulators may require banks to hold higher levels of equity.

d, Suppose that the value of assets increases by 2%. Calculate the banks new level of leverage. How many assets does the bank need to sell in this case to restore its previous level of leverage? From the analysis above, provide a reason why regulators may require banks to hold lower levels of equity.