NewBank started its first day of operations with $4 million in capital. A total of $90 million in chequable deposits is received. The bank makes a $25 million commercial loan and lends another $25 million in mortgage loans. If desired reserves are 8%, what does the bank balance sheet look like? Complete the table below. (Round your answers to two decimal places). Assets ($) Desired Reserves Excess Reserves Loans Liabilities ($) million Chequable Deposits million Bank Capital million 90 million 4 million
NewBank started its first day of operations with $4 million in capital. A total of $90 million in chequable deposits is received. The bank makes a $25 million commercial loan and lends another $25 million in mortgage loans. If desired reserves are 8%, what does the bank balance sheet look like? Complete the table below. (Round your answers to two decimal places). Assets ($) Desired Reserves Excess Reserves Loans Liabilities ($) million Chequable Deposits million Bank Capital million 90 million 4 million
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ee 497.

Transcribed Image Text:NewBank started its first day of operations with $4 million in capital. A total of $90 million in chequable deposits is received. The bank makes a $25 million commercial loan and lends
another $25 million in mortgage loans. If desired reserves are 8%, what does the bank balance sheet look like?
Complete the table below. (Round your answers to two decimal places).
Assets ($)
Desired Reserves
Excess Reserves
Loans
Liabilities ($)
million Chequable Deposits
million
million
Bank Capital
90 million
4 million
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