Your bank has the following balance sheet: Assets Reserves Securities Loans Liabilities Checkable deposits $200 million Bank capital 50 million If the required reserve ratio is 10%, what actions should the bank manager take if there is an unexpected deposit outflow of $50 million? Make sure to show your work. $50 million 50 million 150 million

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. Your bank has the following balance sheet:
Assets
Reserves
Securities
Loans
Liabilities
Checkable deposits
$200 million
Bank capital
50 million
If the required reserve ratio is 10%, what actions should the bank manager take if
there is an unexpected deposit outflow of $50 million? Make sure to show your
work.
$50 million
50 million
150 million
Transcribed Image Text:2. Your bank has the following balance sheet: Assets Reserves Securities Loans Liabilities Checkable deposits $200 million Bank capital 50 million If the required reserve ratio is 10%, what actions should the bank manager take if there is an unexpected deposit outflow of $50 million? Make sure to show your work. $50 million 50 million 150 million
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