Balance Sheet

ASSETS LIABILITIES (plus capital)

Reserves $10,729 Transactions Deposits $47,678

Securities $67,391 Nontransactions Deposits $180,050

Loans $172,421 Bank Borrowing $2,100

Other Assets $2,459 Other Liabilities $8,500

Bank Capital $14,672

Total $253,000 Total $253.000

Using T-accounts, show how each of the following would affect this bank's balance sheet. You need only show the T-accounts, do not show the new balance sheet, just the T-account for each transaction individually. On your T-account, be sure to show which items are changing, by how much, and in what direction (+ or -).

a) A customer of United makes a $250 withdrawal from her checking account

b) United Bank decides to issue a $40,000 loan. State any assumptions you are making about how United finances the loan

c)Show one other way in which United Bank can issue the $40,000 loan, under a different set of assumptions

d) Because of a housing crises, United Bank suffers a $22,000 loss in loans.