Question 1 (24 Marks) a. State the equation that reflects a bank's balance sheet? 2marks b. Harvest Bank has the following financial data: Suppose the required reserve ratio is 12%. i. Determine if Harvest Bank is currently holding any excess reserve. Draw the Taccount for Harvest Bank to show your answers. 3marks ii. On the second day of business, customers decided to withdraw $800 million saving deposits from Harvest Bank. Draw the T-account for Harvest Bank after the $800 million saving deposit withdrawal. Explain if there is any problem created by the $800 million deposit outflow. Explain your answers 5 marks iii. Suggest FOUR options that are available for Harvest Bank to resolve the problem identified in above (b) ( ii ). And, examine the costs that might be incurred under each of the options that you have suggested. To illustrate your answers, you are required to draw the T-account for each of the options suggested 14 marks