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3.(15) The bank you own has the following balance sheet: Assets Liabilities Reserves $80 million Deposits $600 million Securities 50 million Borrowings 50 million Loans
3.(15) The bank you own has the following balance sheet: Assets Liabilities Reserves $80 million Deposits $600 million Securities 50 million Borrowings 50 million Loans 620 million Bank capital__100 million a) If the required reserve ratio is 10% What is the new balance sheet if there is an unexpected deposit outflow of $50 million? Answer: Reserves =. and Deposits = New Total Assets and Total Liabs & Capital = b) If the banker decides the reserve level is too low, what possible steps is the manager able to take to change the situation? Answer: 11 2) c) For the two steps you suggested, that would be the benefits/costs of each? Answer: 1) 2) d) What risk is the banker facing if nothing is done
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