Assume that Bank A receives a primary deposit of $100,000 and that it must keep reserves of 10 percent against deposits. a. Prepare a simple balance sheet of assets and liabilities for the bank immediately after the deposit is received. b. Assume Bank A makes a loan in the amount that can be safely lent. Show what the banks balance sheet of assets and liabilities would look like immediately after the loan. c. Assume that a check in the amount of the derivative deposit created in Part b was written and sent to another bank. Show what Bank As (the lending banks) balance sheet of assets and liabilities would look like after the check is written.
Answer:
Enter the answers in blue shaded cells
ASSETS				LIABILITIES
T	F		T	F
ASSETS				LIABILITIES
T	F		T	F
T	F
ASSETS				LIABILITIES
T	F		T	F
T	F