If bank suffers deposit outflow of 50 million with required

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Reference no: EM13393820

The bank you own has the following balance sheet: (2 points)

Assets Liabilities

Reserves $ 75 million Deposits $ 500 million

Loans $ 525 million Bank capital $100 million

If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10 percent, what action must you take to keep your bank from failing? Show underlying work.

Reference no: EM13393820

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