Question VII: Regulatory Taxes (15 Points / 5 points each) An FI is planning to issue $100 million in BB-rated commercial loans. The FI will finance the loans by issuing demand deposits. a. How much capital must it raise if the minimum capital ratio for the bank is 8 and the risk-weight of commercial loans is 100%? b. What is the minimum amount of demand deposits needed to fund the loan. Assume that reserve requirements at 10%. c. Show the bank's balance sheet if this loan is the only project that it funds.