Suppose bank A has the following balance sheet ASSETS LIABILITIES Reserves K50m Deposits K400m Loans k350m Bank capital k100m securities K100 (a) If the required reserve ratio is 10%, calculate the following: (i) required reserves for bank A (1.5 marks) (ii) Excess reserves for bank A (1.5 marks) (b) If the bank suffers a deposit outflow of k30 million, using a T account, show the effect of this deposit outflow on bank ABCs balance sheet. (4.5 marks) (c) With a required reserve ratio of 10%, how much more reserves are required to meet the legal reserve requirement? (1.5 marks) (d) Explain any three actions that can be taken to keep the bank from failing due to the above deposit outflow. (4.5 marks) (e) Use T accounts to show the effect of each option above on the balance sheet. (4.5 marks) (f) Explain the cost of each option above. And what alternative is recommended for banks to undertake, to avoid a situation where they have to incur these costs (6 marks) (g) Given bank As the initial balance sheet, with the value for assets and bank capital-(before the deposit outflow), assume in addition that the bank has a return on assets of 2%, calculate the following (i) Bank As equity multiplier (1.5 marks) (ii) Bank As return on equity (1.5 marks) (h) Suppose there is a problem in the real estate market such that K120m of the real estate loan for the bank becomes worthless, the bad loans will now be valued at zero and so they will have to be written off. (i) What will be the net worth and implication for the bank? ( 1.5 marks) (ii) What are banks advised to do to avoid the above case? (1.5 marks