Question: Consider a bank with the following balance sheet: Assume that required reserves are 8 % . In order to avoid insolvency, regulators decide to provide
Consider a bank with the following balance sheet:
Assume that required reserves are In order to avoid insolvency,
regulators decide to provide the bank with $ million in bank capital. Assume
that bad news about mortgages is featured in the local newspaper, causing a
bank run. As a result, $ million in deposits is withdrawn.
Show the effects of the capital injection and bank run on the balance sheet
Round your responses to the nearest whole number.
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