Use the following balance sheet for ABC National Bank to answer questions 12 to 16. Assume the reserve requirement is 20 %.

AssetsLiabilities

Reserves$27,000Checkable deposits$110,000

Securities83,000Net worth50,000

Loans50,000

1.If this bank lends all of the excess money and the loan is cleared (used by the borrower) and deposited in another bank, draw the new balance sheet for ABC National Bank. Securities and net worth remain the same.

AssetsLiabilities

Reserves Checkable accounts

Securities83,000Net Worth50,000

Loans