Assume a required reserve ratio of 0.10 to complete the following 25 points Assets Liabilities Reserves ISOM Deposits ESOOM Loans 250M Bank Capital 25M Bonds 125M 1. Calculate the initial required reserves for this bank 2. Calculate the initial excess reserves for this bank 3. Convert all of the excess reserves into loans Construct the new balance sheet 4. Now assume there is a deposit outflow of ESOM. Show the immediate effect on the bank balance sheet. Does this bank conform to bank regulations or does it have a problem. What would you do if you were the bank manager? ER