Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions.

Bank's Balance Sheet
Assets		Liabilities and Owners' Equity
Reserves	$150	Deposits	$1,200
Loans	$600	Debt	$200
Securities	$750	Capital (owners' equity)	$100

Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and the account.

This would also bring the leverage ratio from its initial value of to a new value of .

Which of the following is true of the capital requirement? Check all that apply.

Its intended goal is to protect the interests of those who hold equity in the bank.

It specifies a minimum leverage ratio for all banks.

The higher the percentage of assets a bank holds as loans, the higher the capital requirement.