Question
Your bank has the following balance sheet: Assets Liabilities (unit in million) Reserves $50 Checkable deposits $200 Securities 50 Loans 150 Bank capital 50 b)
Your bank has the following balance sheet:
Assets Liabilities (unit in million)
Reserves $50 Checkable deposits $200
Securities 50
Loans 150 Bank capital 50
b) If there is an unexpected deposit outflow of $50 million, what is the immediate effect on the balance sheet (fill in numbers in the blank)? Is there liquidity risk?
Assets Liabilities
Reserves $_____ Checkable deposits $________
Securities _____
Loans _____ Bank capital ____
c) If there is an unexpected deposit outflow of $100 million, what is the immediate effect on the balance sheet (fill in numbers in the blank)? Is there liquidity risk?
Assets Liabilities
Reserves $_____ Checkable deposits $________
Securities _____
Loans _____ Bank capital ____
d) If there is an unexpected deposit outflow of $150 million, what is the immediate effect on the balance sheet (fill in numbers in the blank)? Is there liquidity risk?
Assets Liabilities
Reserves $_____ Checkable deposits $________
Securities _____
Loans _____ Bank capital ____
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Statistics For Business And Economics
Authors: James T. McClave, P. George Benson, Terry T Sincich
12th Edition
032182623X, 978-0134189888, 134189884, 978-0321826237
