FIND THE ASSETS AND LIABILITIES FOR THE BALANCE SHEET FOR EACH STEP

NewBank started its first day of operations with

$15 million in capital. A total of $200 million in checkable deposits is received. The bank issues a $100 million commercial loans. If required reserve ratio is 10% (Note:Information is based on NewBank's first month of operations.)

Complete NewBank's balance sheet shown below: (Round your responses to the nearest whole number.)

Assets Liabilities

Required reserves $___ Million Checkable Deposits $___ Million

Excess Reserves $___ Million Bank Capital $___ Million

T-Bills $___ Million

NewBank will purchase T-bills. (Round your response to the nearest whole number.) Complete the balance sheet below to show NewBank's purchase. (Round your responses to the nearest whole number) Assets Liabilities Smillion Checkable depositsmillin Required reserves Excess reserves T-bills Loans million Bank capital $million $million smillion NewBank started its first day of operations with $15 million in capital. $200 million in checkable deposits is received. The bank issues $100 million of commercial loans. If required reserves are 10%, what does the bank balance sheets look like? Distinguish between required and excess I. reserves. Assets Liabilities NewBank decides to invest $90 million in 30-day T-bills. What does the balance sheet look like after this transaction? 2. Assets Liabilities On the 3rd day of operations, deposits fall by $10 million. What does the balance sheet look like? Are the reserves sufficient? Note: Reserves cannot be a negative amount; list only the reserves the bank actually has under "required reserves") 3. Assets Liabilities To meet any shortfall in reserves in the previous question, NewBank will borrow the cash in the fed funds market. Management decides to borrow the needed funds for the remainder of the month. What does the balance sheet look like after this transaction? Assets Liabilities