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The balance sheet of Bank of Bank (BOB) is as follows: Assets Liabilities Reserves $10M $20M Capital $10M Deposits $150M U.S. government security Mortgage $60M

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The balance sheet of Bank of Bank (BOB) is as follows: Assets Liabilities Reserves $10M $20M Capital $10M Deposits $150M U.S. government security Mortgage $60M Commercial Loans $70M a What is the capital position of BOB? What is the risk-weighted capital ratio? b. Figure out the effect of each following event on BOB's balance sheet: 1. $5 million deposits are withdrawn; 2. $20 million of commercial loans are proved to be uncollectible and removed from balance sheet; 3. Regulator injects $20 million to BOB as capital; c. Regulator requires BOB's capital ratio to be at least 10%. How much additional capital should be injected to BOB

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