13.DodgeBank has the following items on its balance sheet£10m loans to corporations£5m loans to households£15m invested in government bonds£30m retail current account deposits (deposits by general public with DodgeBank)£5m commercial current account deposits (deposits by companies with DodgeBank)£10m tangible assets and property£ 5m cash in vaults£ 5m reserve deposits with Bank of England (deposits by Dodgebank)£10 borrowing by DodgeBank in money marketa) Construct a balance sheet for DodgeBank with each of the above items included.b) Calculate DodgeBank's net worth and show where it appears on the balance sheet.c) Which of DodgeBank balance sheet items should be included in a standard definitionof "bank money"?d) DodgeBank makes a personal loan of £10,000 to Ms Take, and credits her currentaccount with the amount of the loan. Describe the initial impact on DodgeBank'sbalance sheet, the money supply, and the net worth of both DodgeBank and Ms Take.e) Ms Take then withdraws £10,000 in cash and buys a second hand car from Mr Eyuswho immediately deposits it in his current account with another bank, RunBank. Whatis the impact on DodgeBank's balance sheet, and on the aggregate money supply?f) How would your answer change if Ms Take had paid by debit card?

A balance sheet refers to the form of a financial document that reflects the position of a company…

Answered: DodgeBank has the following items on…

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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Assets Reserves Desired Excess Loans Securities Total Assets ($000s) Liabilities 40,000 Deposits 11,200 300,000 60,000 400,000 Advances from Bank of Canada Borrowings Capital Total Liabilities ($000s) 280,000 0 55,000 65,000 400,000
The T-account below represents assets and liabilities for a bank. Use the T-account to calculate the bank's loans Loans Bonds Reserves Provide your answer below: million Assets ? $18 million $5 million Liabilities + Net Worth Deposits Net Worth $12 million $13 million
5
Ee.77.
Select TWO true statements about money.a. Base money is equal to cash plus commercial bank reserves with the central bankb. Cash is a liability of the central bankc. If a commercial bank makes a loan and credits the borrower's current account, then base money increasesd. Commercial bank reserves with the central bank appear as a liability in their balance sheets
Find the attached file.
Match up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks
Consider the accompanying balance sheet for a Canadian chartered bank. If an additional $1,000,000 is deposited into the bank, then the amount of new loans (beyond its existing loans) that this chartered bank could make would be $. (Enter your response as a whole number.) Assets ($000s) Liabilities Reserves 65,000 Deposits ($000s) 370,000 Desired 18,500 Advances from 0 Bank of Canada Excess Borrowings 65,000 Loans Securities 385,000 Capital 95,000 80,000 Total Assets 530,000 Total Liabilities 530,000
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Use the Table below to answer this question (Table: Bank Balance Sheet) Based on the table, what is the leverage ratio at the bank? Bank Balance Sheet Assets Reserves $10,000 Deposits $100,000 Loans Securities 40,000 10 05 100,000 4.67 Liabilities & Net Worth Debt 20,000 Equity 30,000
QUESTION #1 Populate the following “T-accounts” with the following data, please make sure where double entry is required $100 million in mortgage-backed securities (MBS) $200 million demand deposits $20 million in reserves held by banks $100 million in Treasury securities held by banks $50 million in Treasury securities held by the Fed $5 million in overnight borrowing by banks from the Fed Households Banks Federal Reserve Treasury ___A_______L___ ___A_______L___ ___A_____L___ ___A_____L___
Correctly explanation gives

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