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Q2(Ch-4, Money): Suppose Lacey starts her own bank BestBank. She puts in her own $2000, borrows $4000 from her friends, accepts $10000 deposits from neighbors.

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Q2(Ch-4, Money): Suppose Lacey starts her own bank BestBank. She puts in her own $2000, borrows $4000 from her friends, accepts $10000 deposits from neighbors. She buys 56000 government securities, lend $9000 to other business, keep rest as reserves at central bank. . Show BestBank's balance sheet, and how much is leverage ratio? . Suppose economy is suffering from recession cause 10% business go bankruptcy and default their loans. Show new balance sheet, by what percentage does value of Best- Bank's asset fall? by what percentage does BestBank's capital fall

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