Question
I)Suppose that there exists a bank whose $50,000 deposit is 80% loans and 20% reserves. A.Show the bank's balance sheet. B.Suppose that the bank owners
I)Suppose that there exists a bank whose $50,000 deposit is 80% loans and 20% reserves.
A.Show the bank's balance sheet.
B.Suppose that the bank owners place $10,000 of equity in the bank. They also borrowed $15,000 while purchasing $25,000 of securities.
C.Calculate the leverage ratio. Explain what this leverage ratio means.
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Anatomy Of A Fraud Investigation
Authors: Stephen Pedneault
1st Edition
470560479, 978-0470560471
