Q2 By using the correctly formatted balance sheets prepared in Q1, for each of the 5 years,
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Q2 By using the correctly formatted balance sheets prepared in Q1, for each of the 5 years, calculate the value of the money multiplier, m (use c=0.3). Assuming that NAB's multiplier is representative of the aggregate Australian banking sector, comment on the significance of this multiplier for the Australian economy. What happens in the banking sector (once it reaches equilibrium) if RBA decides to inject $100 M in reserves? Show via a T-Account entry.
https://www.marketwatch.com/investing/stock/nab/financials/balance-sheet?countrycode=au
Q1) NAB bank balance
Assets:
Reserves | Securities | Loans | |
2022 | 56.46B | 146.1B | 822.3B |
2021 | 50.83B | 122.63B | 728.7B |
2020 | 64.39B | 144.34B | 634.84B |
2019 | 55.46B | 149.27B | 619.88B |
2018 | 50.19B | 134.83B | 598.55B |
Liabilities:
Borrowings | Capital | Demand Deposits (CD) | Savings and time deposits (S & T) | Other Liabilities | |
2022 | 290.64B | 59.03B | 410.64B | 206.07B | 86.66B |
2021 | 276.41B | 62.78B | 391.76B | 156.01B | 36.14B |
2020 | 257.02B | 61.29B | 333.48B | 170.31B | 40.62B |
2019 | 273.68B | 55.6B | 264.23B | 201.25B | 48.85B |
2018 | 264.94B | 52.71B | 245.81B | 207.13B | 33.73B |
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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