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the bank you own has the following balance sheet: Assets ( in millions ) Liabilities ( in millions ) Reserves 7 5 Deposits 5 0
the bank you own has the following balance sheet:
Assets in millions Liabilities in millions
Reserves Deposits
Loans Bank Capital
If your bank suffers a deposit outflow of $ million with a required reserve ratio on deposits of what action could you take in order to maintain the bank capital?
Group of answer choices
a Nothing, the bank can still cover deposits without decreasing its capital
b Borrow $ million in discount loans from the Fed
c Buy $ million in securities
d None of the above
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