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4. A bank you own has the following balance sheet: Assets Liabilities Reserves $ 200 million Deposits $950 million Loans
Posted: Wed Mar 30, 2022 3:46 pm
by answerhappygod
- 4 A Bank You Own Has The Following Balance Sheet Assets Liabilities Reserves 200 Million Deposits 950 Million Loans 1 (23.04 KiB) Viewed 39 times
4. A bank you own has the following balance sheet: Assets Liabilities Reserves $ 200 million Deposits $950 million Loans $1000 million Bank Capital $250 million a What are the banks required reserves and excess reserves given a required reserve ratio of 20%? Show your work. b. If the bank suffers a deposit outflow of $100 million with a required reserve ratio on deposits of 20%. What will the balance sheet look like after this deposit outflow? c. Show the balance sheet if bank management borrows from the Federal Reserve or the Federal Funds Market d. Show the balance sheet if bank management decides to call in loans or sell liquid securities.