please give me calculation! The following table shows the initial balance sheet of a hypothetical bank.There are no reserves requirements (the required reserve ratio is zero).However, reserves cannot go below zero. The Fed wouldn't like that. Theborrowings are either from the Fed or from other banks. Assume that theamount of bank capital (net worth) is constant.AssetsLiabilities & NWReserves$20.00 Deposits$140.00Securities$20.00 Borrowings$30.00$30.00$200.00Loans$160.00 Bank CapitalTotal$200.00 TotalStart from the initial balance sheet above. Someone withdraws $25 fromthe bank. The bank borrows the needed amount from some banks. As aresult, the entries in the balance sheet will look like the following:dollarsDeposits :%3D Borrowings =dollarsBank capital =dollars%3DdollarsReserves =dollarsSecurities%3DdollarLoans =%3D

In the above hypothetical balance sheet of the bank --…

Answered: ng ta no res rocor

Business

Accounting

ng ta no res rocor

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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Question

please give me calculation!

The following table shows the initial balance sheet of a hypothetical bank.
There are no reserves requirements (the required reserve ratio is zero).
However, reserves cannot go below zero. The Fed wouldn't like that. The
borrowings are either from the Fed or from other banks. Assume that the
amount of bank capital (net worth) is constant.
Assets
Liabilities & NW
Reserves
$20.00 Deposits
$140.00
Securities
$20.00 Borrowings
$30.00
$30.00
$200.00
Loans
$160.00 Bank Capital
Total
$200.00 Total
Start from the initial balance sheet above. Someone withdraws $25 from
the bank. The bank borrows the needed amount from some banks. As a
result, the entries in the balance sheet will look like the following:
dollars
Deposits :
%3D

Borrowings =
dollars
Bank capital =
dollars
%3D
dollars
Reserves =
dollars
Securities
%3D
dollar
Loans =
%3D

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