Question
The bank you own has the following balance sheet . Assets Liabilities Reserves $90 million Deposits $580 million Loans $605 million Bank capital $115 million
The bank you own has the following
balance sheet
.
Assets | Liabilities |
Reserves | $90 million | Deposits | $580 million |
Loans | $605 million | Bank capital | $115 million |
If the bank suffers a deposit outflow of $55 million with a desired reserve ratio on deposits of 10%, what action(s) should you take? (Select all that apply.)
A. Acquire $55 million of new loans.
B. Call in or sell off $8.8 million of loans from the Bank of Canada.
C. Call in or sell off $17.5 million of loans.
D. Borrow $17.5 million reserves from the Bank of Canada
E. Borrow $55 million from other banks or corporations.
F. Call in or sell off $55 million of loans from the Bank of Canada.
G. Borrow $17.5 million from other banks or corporations
H. Acquire $8.8 million of new loans.
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