The bank you own has the following balance sheet:

1. The bank you own has the following balance sheet:

Assets

Liabilities

Reserves $75 million

Deposits $500 million

Loans $525 million

Bank capital $100 million

If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions should you take?

2. If a bank is falling short of meeting its capital requirements by $1 million, what three things can it do to rectify the situation?