The only liability of the bank is deposits that households keep at the bank.The only two assets of the bank are the loans it makes out and the reserves it keeps.Banks are profit maximizers and keep only the required reserves (i. e. excess reserve = 0)When loans are made, households will redeposit this loan in their checking accounts and use checks.The reserve ratio is 20%.

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position