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Business, 01.11.2019 04:31 smartgirl2092

Assume that required reserves are 8%. in order to avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. assume that bad news about mortgages is featured in the local newspaper, causing a bank run. as a result, $25 million in deposits is withdrawn.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.) was the capital injection enough to stabilize the bank? the bank now has a capital ratio of and the bank is (round your response to one decimal place.) if the bank regulators decide that the bank needs a capital ratio of 9% to prevent further runs on the bank, how much of an additional capital injection is required to reach the 9% capital ratio? bank regulators need to inject an additional $ million to reach the 9% capital ratio. (round your response to one decimal place.)

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