10th BSB M320 Range interview

Beleaguered State Bank (BSB) holds 250 million in deposits and maintains a reserve ratio of 10 percent. a. Show a T-account for BSB. b. Now suppose that BSB's largest depositor withdraws 10 million in cash from her account. If BSB decides to restore its reserve ratio by reducing the amount of loans outstanding, show its new T-account. c. Explain what effect BSB's action will have on other banks. d. Why might it be difficult for BSB to take the action described in part (b)? Discuss another way