Use the following balance sheet to answer the questions below:

ASSETS	LIABILITIES + BANK CAPITAL
Cash Reserves $ 50 million	Demand Deposits $ 300 million
Loans $ 100 million	Other Liabilities $ 250 million
Short-Term Securities $ 270 million
Long-Term Bonds $ 180 million	Bank Capital $ 50 million
TOTAL: $ 600 MILLION	TOTAL: $ 600 MILLION

(a) Assume a required reserve ratio of 10%. Calculate the required reserves and the excess reserves for this bank.

Required Reserves: Excess Reserves:

(b) Assume you lend out all of your excess reserves. Construct the new balance sheet after these new loans have been made.

ASSETS	LIABILITIES + BANK CAPITAL

(c) A financial crisis destroys half the value of your long-term bonds. Revise your balance sheet to reflect this change. Construct the new balance sheet after this adjustment.

ASSETS	LIABILITIES + BANK CAPITAL