Question 3 20 pts Q3) The initial accounts of Bank A and Bank are as follows Bank A Assets Liabilities Reserves $55 ml Deposits $495 mil Loans $495 mil Bank 555 ml Bank B Assets Liabilities Reserves $55 mi Deposits $528 mil Loans $495 mil $22 mil a Suppose each of both banks needs to write off bad loans of $275 million prepare new accounts for both banks What problem is Bank B facing? 9. marks) b Given the return on assets (y), the higher the bank capital is, the higher will be the return on equity for the owners of the bank Do you agree? Use the information from the initial T-accounts of Bank A and Bank B to support your answer (Hint Return on equity - Return on assets x Equity multipher) (5 marks) c What conclusion could you draw from(a) and (by? (marks) Question 3 20 pts Q3) The initial accounts of Bank A and Bank are as follows Bank A Assets Liabilities Reserves $55 ml Deposits $495 mil Loans $495 mil Bank 555 ml Bank B Assets Liabilities Reserves $55 mi Deposits $528 mil Loans $495 mil $22 mil a Suppose each of both banks needs to write off bad loans of $275 million prepare new accounts for both banks What problem is Bank B facing? 9. marks) b Given the return on assets (y), the higher the bank capital is, the higher will be the return on equity for the owners of the bank Do you agree? Use the information from the initial T-accounts of Bank A and Bank B to support your answer (Hint Return on equity - Return on assets x Equity multipher) (5 marks) c What conclusion could you draw from(a) and (by