Suppose that Mid-Size National Bank has the balance sheet in the following table and is required by law to have 20 percent of its total assets as bank capital.
a. What is the maximum simple leverage ratio Mid- Size is permitted to have?
b. What is Mid-Size€™s actual simple leverage ratio?
c. Suppose Mid-Size decides to bring its leverage ratio down to the maximum permitted level by selling some assets and using the proceeds to pay off some of its debts and checking deposits. How much in assets would it have to sell?

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Liabilities and Shareholders' Equity Assets $ 600 million 40 million Property and Buildings Checking Account Deposits $ 100 million $ 200 million Other Deposits Government and Corporate Bonds $ 75 million $ 800 million $ 10 million $ 50 million Bank Borrowing Loans Cash in Vault and ATMS In Accounts with Federal $ 125 million Shareholders' Equity Reserve Total Assets $1,000 million Total Liabilities $1,000 million and Shareholders' Equity