Question: solve in 25 mins i will give thumb up. write final answer at end of solution separately The following table shows the initial balance sheet

solve in 25 mins i will give thumb up. write final

solve in 25 mins i will give thumb up. write final answer at end of solution separately

The following table shows the initial balance sheet of a hypothetical bank. There are no reserves requirements (the required reserve ratio is zero). However, reserves cannot go below zero. The Fed wouldn't like that. The borrowings are either from the Fed or from other banks. Assume that the amount of bank capital (net worth) is constant. Someone withdraws $15 from the bank. As a result, the entries in the balance sheet will look like the

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