a) Using the information provided, construct a balance sheet for FiveHundo Bank. That is, properly list the assets, liabilities, and bank capital of FiveHundo Bank in a T-Account format

b) What is the reserve ratio for FiveHundo Bank? If the reserve requirement is 10%, does this bank satisfy that requirement? Briefly explain

c) Based on your answer to b) suppose this bank decided to buy or sell short-term securities to match the 10% requirement? Briefly explain how much short-term securities they would need to buy or sell to do that.

d) Using the original balance sheet information, if the reserve requirement was 20% and this bank decided to meet that requirement by increasing their checkable deposits (i.e. they conduct a marketing campaign to get more people to sign up and deposit into checking accounts), how much checkable deposit inflow do they need? Show a calculation.

e) Using the original balance sheet information, if the reserve requirement was 1%, how much deposit outflow from money market accounts could this bank sustain and still comply with that regulation? Show a calculation.

FiveHundo Bank Value Duration Categor Bank Capital Checkable Deposits Long-term CDs Long-term Loans Long-term Securities Money Market Deposit Accounts Reserves Saving Deposits Short-term Loans Short-term Securities Variable Rate CDs Variable Rate Loans S25 $200 S50 S15020.0 S100 $125 0.5 S10 $75 S100 S100 S25 S40 2.5 5.5 15.0 0.0 7.5 2.0 0.5 0.8 8.0 FiveHundo Bank Value Duration Categor Bank Capital Checkable Deposits Long-term CDs Long-term Loans Long-term Securities Money Market Deposit Accounts Reserves Saving Deposits Short-term Loans Short-term Securities Variable Rate CDs Variable Rate Loans S25 $200 S50 S15020.0 S100 $125 0.5 S10 $75 S100 S100 S25 S40 2.5 5.5 15.0 0.0 7.5 2.0 0.5 0.8 8.0