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a. Is the bank solvent (Yes/No) The Chowder Bank of Boston Assets Liabilities and Net Worth Reserves 10,000,000 Demand deposits ####### Fed Funds sold: 12,000,000
a. | Is the bank solvent (Yes/No) | |||||
The Chowder Bank of Boston | ||||||
Assets | Liabilities and Net Worth | |||||
Reserves | 10,000,000 | Demand deposits | ####### | |||
Fed Funds sold: | 12,000,000 | Time deposits | 50,000,000 | |||
Loans: | ####### | Fed funds bought: | 10,000,000 | |||
Office building: | 5,000,000 | |||||
Capital (Net Worth): | 7,000,000 | |||||
Total | ####### | Total | ####### | |||
b. | If the value of Loans declines by 8%, is the bank still solvent? (Yes/No) | |||||
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