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1. Assume that ABC bank has $20M in deposits, with a required reserve ratio of 15% it is holding SIM in required reserves. Cost savings

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1. Assume that ABC bank has $20M in deposits, with a required reserve ratio of 15% it is holding SIM in required reserves. Cost savings and customer service are important to the bank. There is a withdrawal of $6M. To meet required reserve ratio, the bank will borrow from the central bank. Prepare a new balance sheet after the withdrawal.List assets and liabilities value Details Required reserve Loans Securities Total Assets 4.000000 28.000.000 13.000.000 45.000.000 Details Deposits Capital Liabilities 20.000.000 25,000,000 45.000.000 0

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