Assume that ABC bank has $10 in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a substantial withdrawal of $3M. Consider cost and customer service you1 are required to adjust the balance sheet after the withdrawal. The bank has no desire to borrow. List the new values for assets and liabilities after the withdrawal Assets Liabilities Deposits Required 3,000,000 10,000,000 reserve Loans 20,000,000 12,000,000 35,000,000 Capital 25, 000,000 Securities Total 35,000,000
Assume that ABC bank has $10 in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a substantial withdrawal of $3M. Consider cost and customer service you1 are required to adjust the balance sheet after the withdrawal. The bank has no desire to borrow. List the new values for assets and liabilities after the withdrawal Assets Liabilities Deposits Required 3,000,000 10,000,000 reserve Loans 20,000,000 12,000,000 35,000,000 Capital 25, 000,000 Securities Total 35,000,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume that ABC bank has $10 in deposits, with a required reserve ratio of 10% it is holding
$3M in required reserve. There is a substantial withdrawal of $3M. Consider cost and
customer service you are required to adjust the balance sheet after the withdrawal. The
bank has no desire to borrow. List the new values for assets and liabilities after the
withdrawal
Assets
Required
Liabilities
Deposits
3,000,000
10,000,000
reserve
Loans
Securities
Total
20,000,000
12,000,000
35,000,000
Capital
25, 000,000
35,000,000
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