Prepare the balance sheet of a bank that has $28 million in reserves, $45 million in securities, $145 million in loans, $160 million in deposits, and $58 million in equity capital.

1. What are the bank's excess reserves if the reserve requirement is 15% of deposits?

2. Suppose that checks drawn on the bank's accounts withdraw $12 million. show what the revised balance sheet looks like? how much additional reserve does the bank need?
3. Suppose that the bank chooses one of the following transactions to make up its reserve deficiency: (1) sell securities; (2) call in loans; (3) borrow from other banks

First show what the balance sheet looks like after each transaction, then explain the advantages and drawbacks of using that particular transaction to make up the reserve deficiency.