Solve clearly

3. Consider again the T-sheet (below) for the Last National Bank. The required reserve ratio is still 10% of deposits. Now the management wants to draw upon excess reserves to buy back $20 million of its stock shares (because it thinks that these shares are undervalued). Is this possible? If so, draw and explain the new T- sheet. Assets Liabilities Reserves $75 million Deposits $500 million Loans $525 million Bank capital $100 million