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(4 points, as marked) GBE Bank lends entirely to Australian firms (in AUD) and its reserves RES are entirely in Australian dollars. Its borrowing B is also entirely in AUD. However, it has branches in both Australia and Italy: its deposits DEP are half in AUD and half in Euros (EUR). Assume that before calculating any ratios, Australian regulators first convert all EUR-denominated balance sheet items to Australian dollars at the current nominal exchange rate. Now suppose the Australian dollar suddenly rises in value vis-a-vis the Euro. (2 points) How does the appreciation affect GBE Bank's capital adequacy ratio in the eyes of Australian regulators? Choose answer here. It raises this It lowers this It does not change this Explain choice here ratio. ratio. ratio. (optional). Your O O O answer (2 points) How does the appreciation affect GBE Bank's reserve ratio in the eyes of Australian regulators? Choose answer here. It raises this It lowers this It does not change this Explain choice here ratio. ratio. ratio. (optional). Your O O O