Finance question 1-5

PROBLEMS bank. Show what Bank A's (the lending bank's balance 1. Assume that Banc One receives a primary deposit of $1 million. sheet of assets and liabilities would look like after the check The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One is written. Rework Problem 2 assuming Bank A has reserve requirements immediately after the deposit is received. 2. Assume that Bank A receives a primary deposit of $100,000 and that are 15 percent of deposits. that it must keep reserves of 10 percent against deposits. 4. Assume that there are two banks, A and Z, in the banking system. a. Prepare a simple balance sheet of assets and liabilities for the Bank A receives a primary deposit of $600,000, and it must keep bank immediately after the deposit is received reserves of 12 percent against deposits. Bank A makes a loan in the b. Assume Bank A makes a loan in the amount that can be amount that can be safely lent. safely lent." Show what the bank's balance sheet of assets a. Show what Bank A's balance sheet of assets and liabilities and liabilities would look like immediately after the loan. would look like immediately after the loan. c. Now assume that a check in the amount of the "derivative b. Assume that a check is drawn against the primary deposit deposit" created in (b) was written and sent to another made in Bank A and is deposited in Bank Z. Show what the