Bank of Russell Property Securities Assets ($ million) Cash in vault and ATMs Deposits at Central Bank Loans Total Assets 100 Demand deposits 200 Other borrowing Liabilities and Equity (Smillion) 50 100 Total Liabilities 1,000 Equity 1,450 Total Liabilities and Equity None of the other options. Bank of Russell is violating the reserve requirement. Bank of Russell is insolvent. 1,200 Bank of Russell is violating both capital and reserve requirements. Bank of Russell is violating the capital requirement. Refer to the balance sheet of the Bank of Russell above. The required capital ratio is 15 percent, and the required reserve ratio is 12.5 percent. Which of the following is correct? 50 1,250 200 1,450

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Justify for the correct option
20.
Bank of Russell
Property
Securities
Cash in vault and ATMs
Deposits at Central Bank
Loans
Total Assets
Assets ($ million)
OO
100
Demand deposits
200 Other borrowing
50
100
Liabilities and Equity (Smillion)
None of the other options.
1,000 Equity
Total Liabilities
1,450 Total Liabilities and Equity
Bank of Russell is violating the reserve requirement
Bank of Russell is insolvent.
Refer to the balance sheet of the Bank of Russell above. The required capital ratio is 15
percent, and the required reserve ratio is 12.5 percent.
Which of the following is correct?
Bank of Russell is violating both capital and reserve requirements.
Bank of Russell is violating the capital requirement.
1,200
50
1,250
200
1,450
Transcribed Image Text:20. Bank of Russell Property Securities Cash in vault and ATMs Deposits at Central Bank Loans Total Assets Assets ($ million) OO 100 Demand deposits 200 Other borrowing 50 100 Liabilities and Equity (Smillion) None of the other options. 1,000 Equity Total Liabilities 1,450 Total Liabilities and Equity Bank of Russell is violating the reserve requirement Bank of Russell is insolvent. Refer to the balance sheet of the Bank of Russell above. The required capital ratio is 15 percent, and the required reserve ratio is 12.5 percent. Which of the following is correct? Bank of Russell is violating both capital and reserve requirements. Bank of Russell is violating the capital requirement. 1,200 50 1,250 200 1,450
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