3) On the 3rd day, bank's checkable deposits fall by $10 million. Completebank's new balance sheet below.AssetsLiabilitiesRequired ReservesCheckable DeposmillionExcess ReservesBank CapitalmillionLoansmillionT-Billsmillion 2. Mean Green Bank started its first day of operations with $10 million incapital. $100 million in checkable deposits is received. The bank issues a $30million commercial loan and another $30 million in mortgages. The requiredreserves are 8%.

Balance sheet: It is the financial statement that show the closing balance of assets, liabilities,…

2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.

2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

3) On the 3rd day, bank's checkable deposits fall by $10 million. Complete
bank's new balance sheet below.
Assets
Liabilities
Required Reserves
Checkable Depos
million
Excess Reserves
Bank Capital
million
Loans
million
T-Bills
million

2. Mean Green Bank started its first day of operations with $10 million in
capital. $100 million in checkable deposits is received. The bank issues a $30
million commercial loan and another $30 million in mortgages. The required
reserves are 8%.

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