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Can you please give a detailed answer for parts e) and f). Please explain your answer :) . Thanks <3 Government securities $50bn Governe balance
Can you please give a detailed answer for parts e) and f). Please explain your answer :) . Thanks <3
Government securities $50bn Governe balance $45b Exchange settlement account balances $30bn Net foreign currency reserves (and gold) $70bn Other assets $2bn Currency at issue $60bn Accounts due to foreign central banks and others $10bn Loans to private banks $40bn a) Classify each of the above individually as either an asset or a liability of the Reserve Bank of Australia. (2 marks) b) Draw up a balance sheet for the Reserve Bank of Australia, using the above data, recording Assets on the left, and Liabilities and Equity Capital on the righl. Assue al he assels and liabiliies of Lhe RBA ave been include i he above lisL (2 marks) c) Calculate the equity capital of the Reserve Bank of Australia. 1 mark) d) Suppose the Reserve Bank of Australia makes a loan of $2bn to the National Australia Bank, which is a private bank. How does this affect the balance sheet of the Reserve Bank of Australia? Which item or items change, and by how much? (2 Imarks) e) Suppose the Reserve bank of Australia pays a dividend of $5bn to the Australian Commonwealth Government. How does this affect the balance sheet of the Reserve Bank of Australia? Which item or items change, and by how much? (2 marks) f) Can the Reserve Bank of Australia go bankrupt? If so, how cculd this happen? If not, why not? 1 mark)Step by Step Solution
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