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You are the owner of Bank of Pecunia, which currently has the following balance sheet: Assets Liabilities Reserves $3,600 Deposits $16,000 Loans $14,400 Bank Capital
- You are the owner of Bank of Pecunia, which currently has the following balance sheet:
| Assets | Liabilities |
| Reserves $3,600 | Deposits $16,000 |
| Loans $14,400 | Bank Capital $2,000 |
- Assume a 10% reserve requirement. If there is a sudden withdrawal of deposits of $2,400, what problem will your bank be facing as a result? Draw the new balance sheet (after the withdrawal) and be specific, including the extent (i.e. $ value) of your problem, for full credit.
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Global Financial Accounting And Reporting Principles And Analysis
Authors: Peter Walton, Walter Aerts
1st Edition
1844802655, 9781844802654
