Use the information given in Upper Midwest National Bank's balance sheet to answer the following questions. Assets Reserves Loans Bank's Balance Sheet $100 Liabilities and Owners' Equity Deposits $1,000 $500 Debt Securities $400 Capital (owners' equity) $50 Suppose the owners of the bank contribute an additional $125 from their own funds and use it to buy securities in the name of the bank. This wor increase the securities account and the account. -$50 This would also bring the leverage ratio from its initial value of O The reserve requirement The total value of liabilities Which of the following do bankers consider when deciding how to allocate their assets? Check all that apply. to a new value of

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Use the information given in Upper Midwest National Bank's balance sheet to answer the following questions.
Assets
Loans
Bank's Balance Sheet
Reserves $100
Liabilities and Owners' Equity
Deposits
$1,000
$500 Debt
Securities $400 Capital (owners' equity)
$50
-$50
Suppose the owners of the bank contribute an additional $125 from their own funds and use it to buy securities in the name of the bank. This would
increase the securities account and
the
account.
This would also bring the leverage ratio from its initial value of
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.
Transcribed Image Text:Use the information given in Upper Midwest National Bank's balance sheet to answer the following questions. Assets Loans Bank's Balance Sheet Reserves $100 Liabilities and Owners' Equity Deposits $1,000 $500 Debt Securities $400 Capital (owners' equity) $50 -$50 Suppose the owners of the bank contribute an additional $125 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account and the account. This would also bring the leverage ratio from its initial value of 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.
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