Problem 2: Based on the balance sheet below, answer the following questions (10 pts.) Capital Requirements for Melvin's Bank Assets Weights Weighted Assets Reserves 20 0.0 Securities Treasury Bonds 45 0.0 Municipal Bonds 10 0.5 Loans Interbank 25 0.2 Home Mortgages 20 0.5 C&I 80 1.0 Total 200 a. Based on the balance statement above, calculate the level of capital that Melvin's must hold to satisfy a minimum equity ratio of 5%. b. Based on the balance statement above, calculate the level of capital that Melvin's must hold to satisfy the risk-based Basel requirement (8%). C. Which of the two requirements is more stringent in this case? If so, why