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Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.Bank's Balance SheetAssets:Reserves $150Loans $600Securities $750Liabilities and Owners' Equity:Deposits $475Debt $200Capital (owners' equity) $8251. Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans.a. This would increase the loans account and (increase/decrease) the (debt, capital, deposits, loan and reserve) account.b. This would also bring the leverage ratio from its initial value of ....................................... to a new value of ...................................2. Which of the following is true of the capital requirement? Check all that apply.a. It specifies a minimum leverage ratio for all banks.b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.c. Its intended goal is to protect the interests of those who hold equity in the bank.

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