Essay
The bank of Hinton has $100 reserves, $10,000 long-term loans, $500 securities, $8800 deposits, and $1400 debt. Due to a macroeconomic slowdown, many people lose their jobs and need to live off their savings for a while. Discuss the possible effects of this situation on the bank of Hinton's assets, liabilities, and capital. Is the bank insolvent? Use numerical examples to illustrate your points.
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