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The bank you own has the following balance sheet. Reserves Loans Assets $120 million $725 million Deposits Bank capital Liabilities $700 million $145 million If
The bank you own has the following balance sheet. Reserves Loans Assets $120 million $725 million Deposits Bank capital Liabilities $700 million $145 million If the bank suffers a deposit outflow of $95 million with a desired reserve ratio on deposits of 10%, what action(s) should you take? (Select all that apply.) A. Acquire $17.8 million of new loans. B. Call in or sell off $17.8 million of loans from the Bank of Canada. C. Call in or sell off $35.5 million of loans. D. Borrow $35.5 million reserves from the Bank of Canada E. Acquire $95 million of new loans. F. Borrow $95 million from other banks or corporations. G. Borrow $35.5 million from other banks or corporations H. Call in or sell off $95 million of loans from the Bank of Canada
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