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The bank that you own has the following balance sheet: Reserves Securities Loans Assets Liabilities $ 60 million Deposits $500 million $120 million Bank capital

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The bank that you own has the following balance sheet: Reserves Securities Loans Assets Liabilities $ 60 million Deposits $500 million $120 million Bank capital $100 million $420 million a) Record a bookkeeping immediately after the bank suffers a deposit outflow of $50 million when a required reserve ratio on deposits is 10%. What problem do you see on the T-account after the event? Assets Reserves Securities Loans Liabilities Deposits Bank capital b) What action(s) you want to take to rectify the situation? Make your suggestion(s) in terms of the T-account and explain them. Assets Liabilities

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