Question
5. Provided the following balance sheet, answer the questions below: Assets Liabilities Required reserves $8 M Checkable deposits $100M Excess reserves $3 M Bank capital
5. Provided the following balance sheet, answer the questions below: Assets Liabilities Required reserves $8 M Checkable deposits $100M Excess reserves $3 M Bank capital $6 M T-bills $45 M Commercial loans $50 M a. What is the required reserve ratio? b. What are the total reserves this bank holds? c. What are the banks risk weighted assets? d. If the bank commits to another $15 Million in its commercial loans, how has the capital ratio changed?
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Raising Venture Capital
Authors: Rupert Pearce, Simon Barnes
1st Edition
0470027576, 978-0470027578
