Part II: Answer the following 4 parts according tho the following information (40 points). Assume that Securitas Bank is a medium-sized bank in the...

Part II:

Answer the following 4 parts according tho the following information (40 points).Assume that Securitas Bank is a medium-sized bank in the country of Hevlatica. The bank's only assets and liabilities at the beginning of the year are given in the following balance sheet:

Vault cash

$8 Billion

Checking Deposits

$200 Billion

Deposits in the Central Bank

$8 Billion

Loans from the Central Bank

$10 Billion

Loans

$230 Billion

Taxes

$20 Billion

Bonds

$50 Billion

Real Estate

$30 Billion

Bank Capital

$96 Billion

5(b).Assume that over the course of the year, the bank receives $25 Billion in new deposits, makes $10 Billion in new loans to businesses and consumers, and $25 Billion in loans default.If there are no changes in any of the other balance sheet categories, show Securitas Bank's balance sheet at year's end. Be sure to include any changes in reserves, assuming that any new reserves are held as deposits with the Central Bank, so vault cash stays constant at $8 Billion. Note that the excess reserve ratio you found in part (a) no longer applies, although the required reserve ratio is still 6%

Show the final balance sheet,notchanges in the balance sheet.

Explain your reasoning, and show your work.

5(d).

Given that the required reserve ratio stayed at 6%, what is the new excess reserve ratio? Show your work.