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Assume that ABC bank has $12M in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a
Assume that ABC bank has $12M in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a substantial withdrawal of $6M. You are required to prepare the balance sheet after the withdrawal. If the bank needs reserves, it will borrow from other banks. Prepare the new balance sheet after the withdrawal. Assets Required reserve Loans Securities Total Assets 3,000,000 22,000,000 12,000,000 37,000,000 Liabilities Deposits Capital ABC Bank 12,000,000 25,000,000 37,000,000 Liabilities
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