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5. Start with the following balance sheet (in millions of dollars) for a bank. For each segment, however, use the updated balance sheet from the
5. Start with the following balance sheet (in millions of dollars) for a bank. For each segment, however, use the updated balance sheet from the previous segment as the starting point. Liabilities+Capital Assets Deposits Reserves 145 100 Capital Loans 20 Securities 50 a. Show the balance sheet after withdrawals of $10 million. Liabilities+Capital Assets Deposits Reserves Capital Loans Securities b. If reserve requirements are 10%, show the balance sheet after the bank borrows in the Federal funds market to meet the reserve requirement. Assets Liabilities+Capital Reserves Deposits Loans Borrowing Capital Securities c. Show the balance sheet after loan losses of $3 million. Assets Liabilities+Capital Reserves Deposits Loans Borrowing Securities Capital
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