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Q2(Ch4, Money): Suppose Lacey starts her own bank BestBank. She puts in her own $2000, borrows $4000 from her friends, accepts $10000 deposits from neighbors.
Q2(Ch4, 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 $6000 government securities, lend $9000 to other business, keep rest as reserves at central bank. 0 Show BestBank's balance sheet, and how much is leverage ratio? 0 Suppose economy is suering 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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