(Answered) Bank national has reserves of 120 loans at 280 checkable

Economics

Bank National has reserves of $120, loans at $280, checkable deposits at $340, and bank capital of $60. Regulations require that the bank's capital ratio (capital divided by total assets) must not go below 10%. What is the highest write down of the bank's loans that the bank can sustain without violating the requirement?

(a) $5

(b) $15

(d) $25

Please explain in details how you got your answer, thank you

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