Show the Bank's balance sheet if the stored liquidity is used to meet the expected deposit drain of $15 million (required reserves ratio 10%). Liabilities and Equities $70 Assets Cash $10 Deposits REPO 20 Interbank loans 20 Loans 50 Equity 10 Securities 20 Total $100 Total $100
Show the Bank's balance sheet if the stored liquidity is used to meet the expected deposit drain of $15 million (required reserves ratio 10%). Liabilities and Equities $70 Assets Cash $10 Deposits REPO 20 Interbank loans 20 Loans 50 Equity 10 Securities 20 Total $100 Total $100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Show the Bank's balance sheet if the stored liquidity is used to meet the expected deposit drain of
$15 million (required reserves ratio 10%).
Assets
Liabilities and Equities
Cash
$10 Deposits
$70
REPO
20
Interbank loans
20
Loans
50
Equity
10
Securities
20
Total
$100
Total
$100
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