LY ANS PART C PLZ THX Old Bank started its first day of operations (11 March, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. (a) If required reserves are

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ONLY ANS PART C PLZ THX

Old Bank started its first day of operations (11 March, 2021) with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages.

(a) If required reserves are 8%, what does the bank balance sheets look like? 

(b) On the first day of operation (11 March, 2021), Clive withdraw his checkable deposits $40 million with the Old Bank. What does the balance sheet look like? Are there any problems? 

(c) Suggest one way that the Old Bank can solve the problem and show how does the bank balance sheet changed afterwards

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