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Your bank has the following balance sheet (Unit: million). The required reserve ratio is 10% 1. Update the balance sheet right after an unexpected deposit
Your bank has the following balance sheet (Unit: million). The required reserve ratio is 10% 1. Update the balance sheet right after an unexpected deposit outflow of $50 million occurs. (5\%) 2. How much more reserves does this bank need to meet the requirement? (10\%) 3. Write down all possible actions the bank manager could take to rectify the situation and comply with the reserve requirement? (10\%) 4. Describe the cost of each action you listed above. (5\%)
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