Table 13.1: FIRST COMMERCIAL BANK Asset Liabilities $150,000 $100,000 ? Deposits Net Worth Total Reserves: $1,000,000 $200,000 Required Reserves Excess Reserves Loans $1,200,000 Total $1,200,000 Total 15. Refer to Table 13. 1. First Commercial bank's excess reserves equal $_ a) 150,000 b) 250,000 c) 100,000 d) 50,000

Table 13.1: FIRST COMMERCIAL BANK Asset Liabilities $150,000 $100,000 ? Deposits Net Worth Total Reserves: $1,000,000 $200,000 Required Reserves Excess Reserves Loans $1,200,000 Total $1,200,000 Total 15. Refer to Table 13. 1. First Commercial bank's excess reserves equal $_ a) 150,000 b) 250,000 c) 100,000 d) 50,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5
Refer to Table 10.1. First Commercial Bank's total loans equal $________. First Commercial Bank Assets Liabilities + Net Worth Reserves $200,000 $1 million Deposits Required -- $200,000 Net Worth Excess $50,000 Loans -- Total $1.2 million $1.2 million Total 1,000,000. 1,050,000 1,150,000 1,200,000
9. Bank leverage Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Assets Reserves Loans Bank's Balance Sheet $150 Liabilities and Owners' Equity $1,200 Deposits $600 Debt Securities $750 Capital (owners' equity) $200 $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply. The higher the percentage of assets a bank holds as loans, the higher the capital requirement. It specifies a minimum leverage ratio for all banks. Its intended goal is to protect the interests of those who hold equity in the bank.
9. Bank leverage Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Liabilities and Owners' Equity Assets Reserves $150 Deposits $1,200 Debt Loans $600 $200 Capital (owners' equity) Securities $750 $100 Suppose a new customer adds $100 to his account at Northeastern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply. Its intended goal is to protect the interests of those who hold equity in the bank. It specifies a minimum leverage ratio for all banks. Its intended goal is to protect the interests of the depositors.
51)Consider the following for National City Bank. If the required reserve ratio is 4 percent, the excess reserves of National City Bank is Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 Select one: a. $10,000 b. $6,000 c. $3,000 d. $4,000
24. Assuming the required reserve ratio is 10%, how much can this bank lend? a) $200,000 b) $300,000 c) $400,000 d) $550,000 e) $3,000,000
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets Reserves Loans Securities Fixed assets Total $3,000 34,000 8,500 4,500 50,000 Total $40,000 10,000 50,000 a. The Oilers Bank is over-reserved by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $
22. Which of the following entries would appear on the liabilities side of a commercial bank's balance sheet? Government of Canada securities demand deposits cash reserves mortgage loans foreign currency reserves
9. Bank leverage Use the information given in Great Lakes National Bank's balance sheet to answer the following questions. Assets Reserves Loans Bank's Balance Sheet $150 Liabilities and Owners' Equity $1,200 Deposits $600 Debt Securities $750 Capital (owners' equity) $200 $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and account. This would also bring the leverage ratio from its initial value of O The reserve requirement The total value of liabilities The size of the monetary base to a new value of Which of the following do bankers consider when deciding how to allocate their assets? Check all that apply. the
11. Please answer the table only. The columns specifically.
Refer to the information provided in Table below to answer the question(s) that follow. Table First Commercial Bank Assets Liabilities + Net Worth Reserves: $800,000 $2 million $500,000 Deposits Net Worth Required $200,000 Exess Loans Total $2.5 million $2.5 million Total Refer to Table First Commercial Bank's excess reserves equal Select one: a. $200,000. b. $1,000,000. C. $1,500,000. d. $600,000.
Table 14.1: FIRST COMMERCIAL BANK Asset Liabilities Total Reserves: $150,000 $100,000 $1,000,000 $200,000 Deposits Net Worth Required Reserves Excess Reserves ? ? Loans $1,200,000 Total $1,200,000 Total 13. Refer to Table 13. 1. First Commercial bank's excess reserves equal $ a) 150,000 b) 250,000 c) 100,000 d) 50,000