9. Banking requirements

Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.

Banks Balance Sheet
Assets		Liabilities and Owners' Equity
Reserves	$200	Deposits	$2,000
Loans	$1,000	Debt	$150
Securities	$800	Capital (owners' equity)	-$150

Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and selector 1

increase

decrease

the selector 2

capital

debt

deposits

loans

reserves

account.

Points:

Close Explanation

Explanation:

This would also bring the leverage ratio from its initial value of selector 1

-14.00

-13.33

-11.23

-10.60

to a new value of selector 2

-14.00

-13.33

-11.23

-10.60

.

Points:

Close Explanation

Explanation:

Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.

The riskiness of each asset

The size of the monetary base

The total value of liabilities