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Question 4 (30 points) The following entries (in millions of dollars) are from the balance sheet of Taxon National Bank (TNB) in 2018: $40 Municipal
Question 4 (30 points) The following entries (in millions of dollars) are from the balance sheet of Taxon National Bank (TNB) in 2018: $40 Municipal bonds 60 Bank building Real estate loans 30 U.S. Treasury bills 50 Demand deposits 70 Mortgage-backed securities 80 Negotiable Order of Withdrawal 90 Savings accounts 20 Reserve deposits with Federal Reserve 50 Cash items in the process of collection 30 Loans from other banks 70 Commercial & industrial loans 100 Discount loans 30 Long-term bonds 50 moitn Collaterals 30 Repurchase agreement 40 a. Use the entries to construct a balance sheet of this commercial bank, with assets on the left side of the balance sheet and liabilities and bank capital on the right side. b. The bank's capital is what percentage of its assets
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