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eports reserves of $100,000, government securities of $250,000, loans of $750,000, checkable deposits of $900,000, and owners' equity of $200,000. The desired reserve ratio is 8 percent and the bank wants to hold as reserves only the amount it is required to hold. . What are the bank's assests and what are its liabilities? . What is the amount of excess reserves for this bank? Show your work. What can the bank do with its excess reserves? How will that affert the

eports reserves of $100,000, government securities of $250,000, loans of $750,000, checkable deposits of $900,000, and owners' equity of $200,000. The desired reserve ratio is 8 percent and the bank wants to hold as reserves only the amount it is required to hold. . What are the bank's assests and what are its liabilities? . What is the amount of excess reserves for this bank? Show your work. What can the bank do with its excess reserves? How will that affert the

FINANCIAL ACCOUNTING
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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051:56 A bank reports reserves of $100,000, government securities of $250,000, loans of $750,000, checkable deposits of $900,000, and owners' equity of $200,000. The desired reserve ratio is 8 percent and the bank wants to hold as reserves only the amount it is required to hold. a. What are the bank's assests and what are its liabilities? b. What is the amount of excess reserves for this bank? Show your work. c. What can the bank do with its excess reserves? How will that affect the quantity of
Transcribed Image Text:051:56 A bank reports reserves of $100,000, government securities of $250,000, loans of $750,000, checkable deposits of $900,000, and owners' equity of $200,000. The desired reserve ratio is 8 percent and the bank wants to hold as reserves only the amount it is required to hold. a. What are the bank's assests and what are its liabilities? b. What is the amount of excess reserves for this bank? Show your work. c. What can the bank do with its excess reserves? How will that affect the quantity of
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