I require help with the following questions, thank you so muchin advance
Assume that Securitas Bank is a medium-sized bank in the country of Hyponatremia. The bank's only assets and liabilities at the beginning of the year are given in the following balance sheet: Securitas Bank Balance Sheet Vault Cash Deposits in the Central Bank Loans Bonds ASSETS Real Estate $8 Billion ? $230 Billion $50 Billion $30 Billion LIABILITES & NET WORTH Checking Deposits Loans from the Central Bank Taxes Due Bank Capital ? $200 Billion $ 10 Billion $ 20 Billion
3a. Assume the required reserve ratio is 6%, and the percentage of excess reserves that Securitas Bank wants to hold is 2%. Using this information, calculate the amount of deposits with the Central Bank, and the bank's capital. Show your work. Edit View Insert Format Tools Table 12pt v Paragraph Р DI B I U AT²V : 0 words </> #
3b. Assume that over the course of the year, the bank receives $25 Billion in new deposits, makes $10 Billion in new loans to businesses and consumers, and $25 Billion in loans default. If there are no changes in any of the other balance sheet categories, show Securitas Bank's balance sheet at year's end. Be sure to include any changes in reserves, assuming that any new reserves are held as deposits with the Central Bank, so vault cash stays constant at $8 Billion. Note that the excess reserve ratio you found in part (a) no longer applies, although the required reserve ratio is still 6% Show the final balance sheet, not changes in the balance sheet. Explain your reasoning, and show your work.
3d. Given that the required reserve ratio stayed at 6%, what is the new excess reserve ratio? Show your work. Edit View Insert Format Tools Table 12pt Paragraph Р BIU A✓ ✓ T²V : 0 words
I require help with the following questions, thank you so much in advance
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