Question
A-Next, the situation status of a bank is shown. Assume that the reserve requirement is 5% on the first $ 50 million of deposit accounts
A-Next, the situation status of a bank is shown. Assume that the reserve requirement is 5% on the first $ 50 million of deposit accounts and 10% on the excess batteries. (millons dlars.") Assets: Liabilities and Capital: Bookings $ 15.9 Odeposits $ 180.0 we loan 150.0 Opital 2010 investments 34.1 Total $ 200.0 Total $2000 1- Calculate the bank's excess reserves. 2-Suppose the bank sells $ 5 million in Investments to improve its liquidity. Show the situation status after this transaction. Indicate the excess of the bank's reserves. 3-Suppose the bank makes commercial loans to various clients for $ 10.4 million. Show the situation status after this transaction. Analyze the reserve account and explain what considerations the bank treasurer should have.
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