Question
NewBank has the following capital structure: Assets Liabilities Reserves $10 million Checkable Deposits $100 million T-bills $50 million Bank Capital $5 million Loans $50 million
NewBank has the following capital structure:
| Assets | Liabilities | ||
| Reserves | $10 million | Checkable Deposits | $100 million |
| T-bills | $50 million | Bank Capital | $5 million |
| Loans | $50 million |
| |
On the 3rd day of operations, deposits fall by $5 million.
What does the balance sheet look like?
If the required reserves are 8%, are there any problems?
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
