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Q4 (15%) Bank A has the following balance sheet (Unit: million). The required reserve ratio is 10% Suppose this bank holds $25 million of securities

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Q4 (15\%) Bank A has the following balance sheet (Unit: million). The required reserve ratio is 10% 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 T-account describing the effect. (5\%) 2. Update the balance sheet right after $25 of securities become worthless. ( 5% ) 3. Will this bank become insolvent? Why? (5\%)

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