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Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Assets Bank's Balance Sheet Liabilities and Owners' Equity $150 Deposits
Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Assets Bank's Balance Sheet Liabilities and Owners' Equity $150 Deposits $1,200 5600 Debt $200 Reserves Loans Securities 5750 Capital (owners' equity) $100 Suppose a new customer adds $100 to his account at Southwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The riskiness of each asset The total value of liabilities The size of the monetary base
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