Assume that the required reserve ratio

Assignment Help Business Economics

Reference no: EM13795907

Your bank has the following balance sheet:

Assets Liabilities

Reserves $50 million Checkable deposits $200 million

Securities $50 million

Loans $150 million Bank capital $50 million

If we assume that the required reserve ratio is 10%, please provide a detailed write-up of what actions could (should) the bank manager take if there is an unexpected deposit outflow of $50 million?

Please rank the feasible courses of action from the most desired to least desired and thoroughly explain the reasoning behind your ranking system.

Reference no: EM13795907

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