Suppose First National Bank begins business with the following balance sheet. The required reserve ratio is 10%. Assets (5 millions) Liabilities (S millions) Cash in Vault Checkable Deposits Bank Capital 1. What is \"asset transformation\" and how do banks profit from it? 2. Suppose the bank makes 40 in commercial loans and buys 40 in securities. Update the balance sheet, categorizing the assets as required reserves, excess reserves, securities and loans. 3. Using the taccounts for the First National Bank and the Second National Bank, describe what happens when jane brown writes a 15 check on her account at the first national bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National bank. 4. Update the Balance sheet of First National Bank. 5. What is the resulting shortfall in reserves