Bank Balance SheetAssetsAmountLiabilitiesTotal reservesLoans$ 80,000120,000Transactions accountsAmount$ 200,000With a required reserve ratio of 10 percent, this bank would have excess reserves ofMultiple ChoiceО$40,000.О$20,000.none of the aboveО$60,000.

Required reserves are the minimum amount of money that a commercial bank must hold in reserve. The…

Answered: Bank Balance Sheet Assets Amount…

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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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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A local bank policy is to hold 12.77% of its deposits as reserves. With current deposits of $8 million and excess reserves of $200,000, calculate the necessary reserve on a fresh deposit of $30,000. Required reserve for new deposit =$ (The answer should be rounded to Zero (0) decimals without the $ sign.)
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30.ABC Corp had the following information: Cash on hand and in bank, P2,500,000 Cash restricted for bonds payable due in 2 years, P1,000,000 Time certificate of deposit, P3,000,000 Savings deposit set aside for dividend payment in 2 years, P500,000 The total amount to be reported as cash and cash equivalent is; 3,000,000 5,500,000 6,500,000 7,000,000
A new bank has vault cash of $2 million and $6 million in deposits held at its Federal Reserve District Bank.If the required reserves ratio is 9 percent, what dollar amount of deposits can the bank have?
The Central Bank requires banks to maintain a 10% legal minimum reserve requirement of their deposits. Bank A with total deposits of $100 million isfully loaned up. This means that Bank A has excess reserves of A. 0 B. $10 million C. $1,000 million
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets $4,000 62,000 17,000 9,000 Reserves $72,000 20,000 Loans Securities Fixed assets Total 92,000 Total 92,000 a. The Oilers Bank is over-reserved v by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $ 14 of 40 Next > < Prev
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Which of the following statements is/are correct. I. If the reserve requirement is 10% and bank X has $500 in deposits then the excess reserves of bank X has to be $50. II. Banks are not required to have excess reserves. I and II Il only I only none
Show new balance sheet if bank uses purchased liquidity management to offset expected drain of $12 million net deposit. Also explain effect on the size and composition of assets and liab
Bank two currently has $500 million in transaction deposits. The bank has $65 million in reserves. The and its Federal reserve requirement ratio is 12%. The bank's required reserves are excess reserves are A. $60 million; $0. B. $60 million; $5 million. C. $440 million; $5 million. D. $600 million; $60 million.

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Bank Balance Sheet Assets Amount Liabilities Total reserves Loans $ 80,000 120,000 Transactions accounts Amount $ 200,000 With a required reserve ratio of 10 percent, this bank would have excess reserves of Multiple Choice $40,000. $20,000. none of the above $60,000.