Consider the following balance sheet for XYZ Community Bank: Assets Reserve T-bonds Agency Mortgage Commercial Consumer TA $ million Duration Risk weight Liabilities $ million Duration 4 0 O Deposits 40 0 10 5 O Money mkt 20 0.2 6 3 0.2 CD 18 0.8 10 4 0.5 Borrowings 15 2.5 30 1 Loan loss reserve 2 0 40 2.5 1 Capital 5 0 100 TL 100 2 (1) Interest rate was 6%. However, the rate has just increased by 1%. What would happen to net worth (capital)? (11) Required reserve for deposits is 10%. The bank experiences a deposit withdrawal for $1 million. Calculate the current reserve and required reserve after the withdrawal. Does the bank have enough reserve to meet the required reserve? (111)Calculate the risk-weighted assets and risk-weighted capital ratio. Consider the following balance sheet for XYZ Community Bank: Assets Reserve T-bonds Agency Mortgage Commercial Consumer TA $ million Duration Risk weight Liabilities $ million Duration 4 0 O Deposits 40 0 10 5 O Money mkt 20 0.2 6 3 0.2 CD 18 0.8 10 4 0.5 Borrowings 15 2.5 30 1 Loan loss reserve 2 0 40 2.5 1 Capital 5 0 100 TL 100 2 (1) Interest rate was 6%. However, the rate has just increased by 1%. What would happen to net worth (capital)? (11) Required reserve for deposits is 10%. The bank experiences a deposit withdrawal for $1 million. Calculate the current reserve and required reserve after the withdrawal. Does the bank have enough reserve to meet the required reserve? (111)Calculate the risk-weighted assets and risk-weighted capital ratio