Question: please help me solve 2&3 1. (1 point) what is the capital ratio of the High capital bank and the Low capital bank respectively? 2.
1. (1 point) what is the capital ratio of the High capital bank and the Low capital bank respectively? 2. (1 point) If both banks suffer a bad loan loss of $5 million, how do their balance sheets change? Show the new balance sheets for both banis atter the loss below. 3. (1 point) Does the amount of reserves affect anything? Explain why or why not
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
