Q4 (15%) Bank A has the following balance sheet (Unit: million). The required reserve ratio is 10% Assets I Liabilities + Capital Reserves $ 50 Deposits $ 200 SBCuIities $50 Borrowings $0 Loans $ 120 Bank capital $ 20 Suppose this bank holds $25 million of securities issued by a firm that has declared bankruptcy and now, these securities become worthless. 1. Show the Taccount describing the effect. (5%) 2. Update the balance sheet right after $25 of securities become worthless. (5%) Assets | Liabilities Reserves $ __ Deposits $ ______ Securities $ __ Borrowings $ ____ Loans $ __ Bank capital $ ______ 3. Will this bank become insolvent? Why? (5%}