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Give an example of a bank balance sheet with a leverage ratio of 20. If the...

Give an example of a bank balance sheet with a leverage ratio of 20. If the value of thebank’s assets rises by 2 percent, what happens to the value of the bank’s asset’s rises by 2percent, what happens to the value of the owner’s equity in this bank? How would largedecline in the value of bank assets would it take to reduce this bank’s capital to zero?

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