Question: please answer with clear steps. The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4).

 please answer with clear steps. The following table provides balance sheet

please answer with clear steps.

The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4). 2/2 Five Hundo Bank $ Category Value Duration Bank Capital S25 Checkable Deposits $200 2.5 Long-term CDs $50 5.5 Long-term Loans $150 20.0 Long-term Securities $100 15.0 Money Market Deposit Accounts $125 0.5 Reserves $10 0.0 Saving Deposits $75 7.5 Short-term Loans $100 2.0 Short-term Securities $100 0.5 Variable Rate CDs S25 0.8 Variable Rate Loans $40 8.0 Page 1 of 2 3) a) b) c) Using the information provided, construct a balance sheet for Five Hundo Bank. That is, properly list the assets, liabilities, and bank capital of Five Hundo Bank in a T-Account format. What is the reserve ratio for Five Hundo Bank? If the reserve requirement is 10%, does this bank satisfy that requirement? Briefly explain Based on your answer to b) suppose this bank decided to buy or sell short-term securities to match the 10% requirement? Briefly explain how much short-term securities they would need to buy or sell to do that. Using the original balance sheet information, if the reserve requirement was 20% and this bank decided to meet that requirement by increasing their checkable deposits (i.e. they conduct a marketing campaign to get more people to sign up and deposit into checking accounts), how much checkable deposit inflow do they need? Show a calculation. Using the original balance sheet information, if the reserve requirement was 1%, how much deposit outflow from money market accounts could this bank sustain and still comply with that regulation? Show a calculation. d) e) The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4). 2/2 Five Hundo Bank $ Category Value Duration Bank Capital S25 Checkable Deposits $200 2.5 Long-term CDs $50 5.5 Long-term Loans $150 20.0 Long-term Securities $100 15.0 Money Market Deposit Accounts $125 0.5 Reserves $10 0.0 Saving Deposits $75 7.5 Short-term Loans $100 2.0 Short-term Securities $100 0.5 Variable Rate CDs S25 0.8 Variable Rate Loans $40 8.0 Page 1 of 2 3) a) b) c) Using the information provided, construct a balance sheet for Five Hundo Bank. That is, properly list the assets, liabilities, and bank capital of Five Hundo Bank in a T-Account format. What is the reserve ratio for Five Hundo Bank? If the reserve requirement is 10%, does this bank satisfy that requirement? Briefly explain Based on your answer to b) suppose this bank decided to buy or sell short-term securities to match the 10% requirement? Briefly explain how much short-term securities they would need to buy or sell to do that. Using the original balance sheet information, if the reserve requirement was 20% and this bank decided to meet that requirement by increasing their checkable deposits (i.e. they conduct a marketing campaign to get more people to sign up and deposit into checking accounts), how much checkable deposit inflow do they need? Show a calculation. Using the original balance sheet information, if the reserve requirement was 1%, how much deposit outflow from money market accounts could this bank sustain and still comply with that regulation? Show a calculation. d) e)

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