Use Table 12. Suppose there is a deposit outflow of $11. The reserve requirement is 12.00%. To meet the shortfall the bank sells loans for $0.85 cents on the dollar. How many loans are required to sell? Reserves Loans Treasury Securities $6.68 $7.86 $4.71 Assets $9.41 15 84 10 Table 12 Deposits Capital Liabilities 100 9

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Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.