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TablaRasa Bank is starting out with reserves of $2,800 and has had the following transactions: - TablaRasa Bank takes out a $4,000 loan from GuruBank.
TablaRasa Bank is starting out with reserves of $2,800 and has had the following transactions: - TablaRasa Bank takes out a $4,000 loan from GuruBank. - TablaRasa Bank has $1,800 invested in building and operations. - Aparna deposits \$1,600. - Ghali deposits $900. - Chengxi takes out a loan for $900. - Viggo takes out a business loan for $1200. - TablaRasa Bank invests $1,000 in Bitcoin. a) What are TablaRasa Bank's excess reserves? Assume that the Federal Reserve requires a reserve ratio of 5 percent. b) What are its total assets and total liabilities? What is its stockholders' equity? c) If the required reserve ratio is 10 percent, then how much must TablaRasa bank keep in its reserves? d) Say TablaRasa Bank loses 75 percent of its investment with Bitcoin and Chengxi pays back her loan plus 20 percent interest. TablaRasa Bank uses these returns on the loan to pay off part of its loan from GuruBank. Also, Viggo defaults on his loan and can't pay any of it back. What is the current value of TablaRasa Bank's stockholders' equity? e) Are you worried there may be a run on the bank
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