WestBank just started operations with $6 million in capital. On the first day of operations, it received $100 million in chequable deposits and issued
$25 million non-mortgage loans and another $25 million in mortgages.

A. If the desired reserve ratio is 8%, what does the banks balance sheet look like?

B. On the second day of operations, the bank  decides to invest $45 million in 30-day T-bills, traded at $4986.70 per $5000 face value. How many T bills does the bank purchase? How does  the banks balance sheet look after the purchase of these T-bills?

C. On the third day of operations, deposits fall by $5 million. What does the balance sheet look like? Are there any problems? If yes, how can the bank address the problems?