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Refer to the table below for the following two questions. Table: Hypothetical Bank Sheet ($ millions) Column A Column B Loans $6500 Investments $3500 Short-term
Refer to the table below for the following two questions.
Table: Hypothetical Bank Sheet ($ millions)
Column A | Column B | ||
Loans | $6500 | ||
Investments | $3500 | Short-term Debt | $500 |
Cash | 1500 | Long-term Debt | $2000 |
Reserves | 500 | Deposits | 8000 |
The bank's capital-to-assets ratio is ____________.
If the reserve requirement is 10%, the bank must add $ __________ to its reserve balance to satisfy the requirement.
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