: The balance sheet for Maritime Bank as of yesterday is shown below. Use the balance sheet below to answer the questions. The required reserve ratio is 12%. Calculate the bank's excess reserves. Suppose a depositor wanted to transfer $200,000 out of their checking account to another bank. Could Maritime honor that request? How would Maritime need to change their balance sheet to be appropriately managing their liquidity? From the original balance sheet, suppose the bank expects interest rates to rise which would impact the value of their government bonds. Suppose the price of the 10 year Treasury bonds is expected to change by 6%. Would this cause a problem for the bank? Why or why not? Asset Liabilities Vault Cash 300,000 Checkable 3,400,000 Deposits Reserves at the 400,000 Saving Deposits 4,500,000 Fed 30 day Treasury 2,600,000 Long-term 1,400,000 Bills Time Deposits 10 year Treasury Bonds 1,940,000 Discount Loans Mortgages 3,960,000 Federal Funds Loans Federal Funds 800,000 Bank Loans Capital

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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: The balance sheet for Maritime Bank as of
yesterday is shown below. Use the balance
sheet below to answer the questions. The
required reserve ratio is 12%.
Calculate the bank's excess reserves.
Suppose a depositor wanted to transfer
$200,000 out of their checking account to
another bank. Could Maritime honor that
request? How would Maritime need to change
their balance sheet to be appropriately
managing their liquidity?
From the original balance sheet, suppose the
bank expects interest rates to rise which would
impact the value of their government bonds.
Suppose the price of the 10 year Treasury
bonds is expected to change by 6%. Would this
cause a problem for the bank? Why or why
not?
Asset
Liabilities
Vault Cash
300,000
Checkable
3,400,000
Deposits
Reserves at the
400,000
Saving
Deposits
4,500,000
Fed
30 day Treasury
2,600,000
Long-term
1,400,000
Bills
Time
Deposits
10 year
Treasury Bonds
1,940,000
Discount
Loans
Mortgages
3,960,000
Federal
Funds
Loans
Federal Funds
800,000
Bank
Loans
Capital
Transcribed Image Text:: The balance sheet for Maritime Bank as of yesterday is shown below. Use the balance sheet below to answer the questions. The required reserve ratio is 12%. Calculate the bank's excess reserves. Suppose a depositor wanted to transfer $200,000 out of their checking account to another bank. Could Maritime honor that request? How would Maritime need to change their balance sheet to be appropriately managing their liquidity? From the original balance sheet, suppose the bank expects interest rates to rise which would impact the value of their government bonds. Suppose the price of the 10 year Treasury bonds is expected to change by 6%. Would this cause a problem for the bank? Why or why not? Asset Liabilities Vault Cash 300,000 Checkable 3,400,000 Deposits Reserves at the 400,000 Saving Deposits 4,500,000 Fed 30 day Treasury 2,600,000 Long-term 1,400,000 Bills Time Deposits 10 year Treasury Bonds 1,940,000 Discount Loans Mortgages 3,960,000 Federal Funds Loans Federal Funds 800,000 Bank Loans Capital
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