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NewBank started its first day of operations with $118 million in capital. A total of $251 million in checkable deposits is received. The bank makes
NewBank started its first day of operations with $118 million in capital. A total of $251 million in checkable deposits is received. The bank makes a $22 million commercial loan and another $28 million in mortgage loans. Required reserves are 8.3%. NewBank decides to invest $293 million in 30-day T-bills. The T-bills are currently trading at $4, 986 (including commissions) for a $5, 040 face value instrument. How many T-bills do they purchase? NewBank will purchase T-bills. Complete the balance sheet below to show NewBank's purchase
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