Suppose that Mid-Size National Bank has the balance sheet in the following table, and one day, the value of every asset it holds (including its loans) decreases by 5 percent.
a. What is Mid-Size€™s leverage ratio now?
b. Suppose Mid-Size wants to bring its leverage ratio back to its original level, by selling assets at their current lower value, and using the proceeds to pay off its debts or reduce its deposits. How much in assets must Mid-Size 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