Manage the liquidity of the Timberlake Bank given the following scenarios. The legal reserve requirement is 5 percent. Use this initial balance sheet to answer each question: Timberlake Bank Balance Sheet (Millions USD) Assets Liabilities Reserves $5 Transaction deposits $100 Securities $10 Nontransaction deposits $250 Loans $385 Borrowings $50 Other assets $100 Capital $100 Totals $500 $500

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter12: Money And Banking
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Problem 10E
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1) a) Deposits outflows of $3.5 and inflows of $3.5. b) Deposit outflows of $4.2 and inflows of $5.8. c) Deposit outflows of $3.7 and inflows of $0.2.

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Manage the liquidity of the Timberlake Bank given the following scenarios. The legal reserve
requirement is 5 percent. Use this initial balance sheet to answer each question:
Timberlake Bank Balance Sheet (Millions USD)
Assets
Liabilities
Reserves $5
Transaction deposits $100
Securities $10
Nontransaction deposits $250
Loans $385
Borrowings $50
Other assets $100 Capital $100
Totals $500
$500
Transcribed Image Text:Manage the liquidity of the Timberlake Bank given the following scenarios. The legal reserve requirement is 5 percent. Use this initial balance sheet to answer each question: Timberlake Bank Balance Sheet (Millions USD) Assets Liabilities Reserves $5 Transaction deposits $100 Securities $10 Nontransaction deposits $250 Loans $385 Borrowings $50 Other assets $100 Capital $100 Totals $500 $500
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