Question: Can someone quickly help me with this homework question for my test tomorrow. The reserve requirements is 10% of checkable deposits. The capital requirements is

Can someone quickly help me with this homework question for my test tomorrow.

The reserve requirements is 10% of checkable deposits. The capital requirements is 5% of total RWA (Risk-Weighted Assets). Calculate the capital requirements for bank A. Does bank A meet the reserves and capital requirements? Explain briefly. Assume bank A is going to make a loan of %50M to a firm by writing to their balance sheet: Recommend a (feasible) solution for bank A so they can conduct the above transaction without violating the reserves requirements. Explain in detail your recommendation

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