The bank you own has the following balance sheet Reserves Loans Assets OA. You can go to the discount window OB. You can call in or sell off loans OC. You can borrow reserves in the federal funds market OD. Any of the above are appropriate actions to take. Liabilities $75 million Deposits Bank capital $525 million If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions can you take to keep your bank from failing? $500 million $100 million

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The bank you own has the following balance sheet
Assets
OA. You can go to the discount window.
OB. You can call in or sell off loans.
OC. You can borrow reserves in the federal funds market
OD. Any of the above are appropriate actions to take
Liabilities
$75 million
Reserves
Loans
Deposits
Bank capital
$525 million
If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions can you take to keep your bank from failing?
$500 million
$100 million
Transcribed Image Text:The bank you own has the following balance sheet Assets OA. You can go to the discount window. OB. You can call in or sell off loans. OC. You can borrow reserves in the federal funds market OD. Any of the above are appropriate actions to take Liabilities $75 million Reserves Loans Deposits Bank capital $525 million If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions can you take to keep your bank from failing? $500 million $100 million
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