Question
The information provided on table is correct. Assets Liabilities Reserves = $1000 Deposits = $5500 Loans = $4500 Capital = $1000 Other Assets = $1000
The information provided on table is correct.
Assets | Liabilities |
Reserves = $1000 | Deposits = $5500 |
Loans = $4500 | Capital = $1000 |
Other Assets = $1000 | |
Total Assets = $6500 | Total Liabilities and Capital = $6500 |
1. Continuing with the previous problem, how will the balance sheet look after the bank lends $400 million of its newly acquired cash to assorted borrowers?Do not use dollar signs, commas, or decimal points. Find the Following.
Reserves: $1000
Loans: $4900
Other Assets: $1000
Total Assets: $6900
Deposits: $5900
Capital: $1000
Total Liabilites & Capital: $6900
Fo number one i only got 3/7 correct but idk which one i got correct
2. Continuing with the previous problem, how will the balance sheet look following a $2,000 million default from one of its loan customers? That is, someone to whom the bank had loaned $2,000 million informs the bank that they cannot repay the loan.Do not use dollar signs, commas, or decimal points. Find the follwoing.
Reserves:
Loans:
Other Assets:
Total Assets:
Deposits:
Capital:
Total Liabilites & Capital:
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