Question
Balance sheet of a commercial bank: Assets Liabilities Reserves $? Deposits 900$ Loans 910$ Debt 50$ Capital (owner's equity) 50$ UAE central bank fixed the
Balance sheet of a commercial bank:
Assets Liabilities
Reserves $? Deposits 900$
Loans 910$ Debt 50$
Capital (owner's equity) 50$
UAE central bank fixed the reserve ratio , R= 10%
a- Calculate the reserve amount
b- Define leverage and calculate the leverage ratio of the bank and interpret it.
Please solve both the parts with proper steps and explanation and do it asap, thanks
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Global Development And The Environment Perspectives On Sustainability
Authors: Joel Darmstadter
1st Edition
1317335686, 9781317335689
