question 2: Suppose that at the depositor at Citibank requests that $260,000 be transferred to another commercial bank. What problem is Citibank now facing and why are they facing this problem? Detail and describe at least one way Citibank can solve this problem.

Utilize the following balance sheets to answer the following questions: Citibank Federal Reserve Assets Assets Liabilities and Stockholder's Equity Liabilities 5300,000 Deposits Liabilities and Stockholder's Equity Liabilities $200,000 MBS S40,000 Central Bank Stockholder's Equity Stockholder's Equity Question 1: Is Citibank suffering from a liquidity or solvency problem given the current state of their balance sheet? (Provide a brief explanation in at least 2 sentences for full credit.) Question 5: What actions could the Fed take to solve Citibank's problem. Describe these actions and how they would affect Citibank's balance sheet. (Provide a brief paragraph for full credit.)