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The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4). 2/2 FiveHundo Bank $ Category

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The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4). 2/2 FiveHundo Bank $ Category Value Duration Bank Capital $25 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 $25 0.8 Variable Rate Loans $40 8.0 Page 1 of 2 @ w Using the information provided, construct a balance sheet for FiveHundo Bank. That is, properly list the assets, liabilities, and bank capital of FiveHundo Bank in a T-Account format. b) What is the reserve ratio for FiveHundo Bank? If the reserve requirement is 10%, does this bank satisfy that requirement? Briefly explain C) 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. d) 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. e) 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

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