The bank you own has the following balance sheet:

Assets Liabilities

Reserves $ 75 million Deposits $ 500 million

Loans $ 525 million Bank capital $100 million

a. If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10 percent, what risk is your bank facing and why?

b.With a deposits outflow of $50 million, will the bank meet the reserve requirement? Show your work

c.what action must you take to keep your bank from failing