Question

The MCM bank has the following balance sheet: ASSETS                           LIABILITIES Reserves K75m.   &n

The MCM bank has the following balance sheet:
ASSETS                           LIABILITIES
Reserves K75m.               Deposit K500m
Loans K525m.                  Bank Capital K100m
If the bank suffers a deposit outflow of K50m with a required reserve ratio on deposits of
10%, what actions must the bank take to keep it bank from failing?   

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