You have following information on the Bank of Morrisland: it currently holds a total of $150 million in checking account deposits and a total of $45 million in reserves. It has borrowed $20 million from the Federal Reserve as discount loans. It has raised another $80 million by borrowing through the REPO funding. The bank currently holds $45 million in treasury securities and $120 million in mortgage backed securities. The bank has made a $15 million loan to consumers and a $25 million loans to corporations. The bank has made another $40 million loan in mortgages. Assume that required reserve ratio is 10%. 1. What does the bank balance sheet look like? 2. Following a trouble in the mortgage market, the bank found that the present value of mortgage backed securities have declined to 80m. As a result, regulators forced the bank to sell these mortgage-backed securities to recognize the fair market value. In the meantime, hearing the news depositors pull out 25 million dollars from the bank. What does bank's balance sheet look like? How do these events affect its capital position? 3. Find out how much capital injection is required in this scenario so that bank can reach a 10% capital ratio.