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Calculate the following: a. Total asset, total liabilities and bank capital. b. The amount of reserve, required reserve and the maximum amount of new money
Calculate the following:
a. Total asset, total liabilities and bank capital.
b. The amount of reserve, required reserve and the maximum amount of new money this bank can create
Basics of Bank's Balance Sheet 4. You are given the following balance sheet for First Bank, the required reserve ratio is 10% Liabilities Assets Cash in vault s150 (total) Deposits S1820 (total) Loans $1400 (total) Components of these deposits: $800 in checkable deposits Components of these loans S1020 in savings deposits S900 loans to businesses S285 non-mortgage loans to Borrowings: Federal funds $50 consumers Other liabilities $80 $140 home mortgages Bank Capital $75 federal funds Deposit in the Fed $220 Bonds, $300 total Components of these bonds s135 in US government bonds S110 in munic ial bonds $55 in "other" bonds Buildings $500 Total Assets Total liabilities and capital SStep by Step Solution
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