Homework Answers
A. 20
Explanation:
Total assets = reserves + loans + securities = $10,000 + $100,000 + $40,000 = $150,000.
Owner's equity = $30,000.
So, in order to the owner's equity to be 0, the total asset ($150,000) needs to fall by 20% (20% of $150,000 = $30,000)
Add Answer to:
Table: Bank Balance Sheet Bank Balance Sheet Assets Reserves Liabilities& Net Worth S 10,000 Deposits $100,000...
Question 18 1 pts Table: Bank Balance Sheet Bank Balance Sheet Assets Liabilities & Net Worth...
Question 18 1 pts Table: Bank Balance Sheet Bank Balance Sheet Assets Liabilities & Net Worth Reserves $ 10,000 Deposits $100,000 Loans 100,000 Debt 20,000 Securities 40.000 Equity 30,000 Based on the table, what is the leverage ratio and reserve-deposit ratio at the bank? Would the bank become insolvent (negative capital) with a 10% loss in the value of assets? O 5, 10% and Yes O 3,6.6% and Yes O 5, 10% and No O 3, 10% and No
Bank A Assets Liabilities & Net Worth Reserves $20 Deposits $120 Bonds $10 Borrowing $40 Loans...
Bank A Assets Liabilities & Net Worth Reserves $20 Deposits $120 Bonds $10 Borrowing $40 Loans $230 Net Worth $100 Bank B Assets Liabilities & Net Worth Reserves $10 Deposits $150 Bonds $30 Borrowing $20 Loans $260 Net Worth $130 Suppose that there are only two banks in the United States (so that all the banking rules and regulations pertain to the U.S.). The tables above show the balance sheets of these two banks at a point in time. The...
Bank Balance Sheet | Liabilities & Net worth $100,000 S 10 100,000Debt 30,00 0,000 Equity 5....
Bank Balance Sheet | Liabilities & Net worth $100,000 S 10 100,000Debt 30,00 0,000 Equity 5. Based on the table, what is the leverage ratio at the bank? A) 3 B)4.67 C)5 D) 10 6. Based on the table, what is the reserve-deposit ratio at the bank? A) 3 percent. B) 5 percent. C) 10 percent. D) 15 percent 7. Based on the table, owners' equity will fall to zero if loan defaults reduce the value of total assets by...
Assets Cash Last National Bank Balance Sheet 1 Liabilities and net worth Checkable $ 19.000 $...
Assets Cash Last National Bank Balance Sheet 1 Liabilities and net worth Checkable $ 19.000 $ 115,000 deposits $ 98,000 Stock shares 280,000 $ 278,000 S Reserves Property Instructions: Enter your answers as whole numbers. a. Suppose a depositor at the bank writes a check for $25,000 to a contractor to pay for some remodeling work done on her home. The contractor deposits the check in his bank (which is a different bank). What will last National Bank's balance sheet...
The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio...
The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Using balance sheet A, how would this look. How much excess reserves currently exist for the bank? Households deposit $5000 in currency into the bank that is added to reserves. (Show this addition on the balance sheet A. What level of excess reserves does the bank now have? Assuming the excess reserves become loans, what would this look like on the...
Assets Liabilities + Net Worth Reserves $120,000 Checkable Deposits $300,000 Loans 140,000 Stock Shares 200,000 Securities...
Assets Liabilities + Net Worth Reserves $120,000 Checkable Deposits $300,000 Loans 140,000 Stock Shares 200,000 Securities 40,000 Property 200,000 The accompanying balance sheet is for the First Federal Bank. Assume the required reserve ratio is 20 percent. If the original bank balance sheet was for the whole commercial banking system rather than a single bank, loans and deposits could have been expanded by a maximum of: $40,000. $100,000. $200,000. $300,000.
Exercise 2 Below is the balance sheet of BOA: Assets Liabilities Reserves : $300,000 Deposits $...
Exercise 2 Below is the balance sheet of BOA: Assets Liabilities Reserves : $300,000 Deposits $ 500,000 Required $100,000 Net Worth Excess Loans Total $ 800,000 Total : Calculate the Values of Net Worth, Total Liabilities, Excess and Loans Calculate the required reserve ratio By how much can the bank lend out and by how much will money supply increase If the required reserve ratio falls to 15% and Bank BOA continues to hold 300,000 as reserves, will...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities and net worth Reserves $ 107,500 Checkable $ 120,000 deposits Loans $ 28,500 Stock shares $ 290,000 Property $ 274,000 Suppose the bank decides to invest 40 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities and net worth Checkable deposits $ Reserves 69,500 97,000 $ 42,500 Stock shares $ Loans 220,000 $ 205,000 Property Suppose the bank decides to invest 80 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at a...
Balance Sheet of Big-But-Simple Bank (BBSB) Assets Liabilities and Net Worth Loans $300 billion Deposits $240...
Balance Sheet of Big-But-Simple Bank (BBSB) Assets Liabilities and Net Worth Loans $300 billion Deposits $240 billion Equity $60 billion The table above shows the balance sheet of Big-But-Simple Bank (BBSB). This bank has taken $60 billion of shareholders' equity and leveraged it: Answer: ______ to ______.
Question 18 1 pts Table: Bank Balance Sheet Bank Balance Sheet Assets Liabilities & Net Worth Reserves $ 10,000 Deposits $100,000 Loans 100,000 Debt 20,000 Securities 40.000 Equity 30,000 Based on the table, what is the leverage ratio and reserve-deposit ratio at the bank? Would the bank become insolvent (negative capital) with a 10% loss in the value of assets? O 5, 10% and Yes O 3,6.6% and Yes O 5, 10% and No O 3, 10% and No
Bank A Assets Liabilities & Net Worth Reserves $20 Deposits $120 Bonds $10 Borrowing $40 Loans $230 Net Worth $100 Bank B Assets Liabilities & Net Worth Reserves $10 Deposits $150 Bonds $30 Borrowing $20 Loans $260 Net Worth $130 Suppose that there are only two banks in the United States (so that all the banking rules and regulations pertain to the U.S.). The tables above show the balance sheets of these two banks at a point in time. The...
Bank Balance Sheet | Liabilities & Net worth $100,000 S 10 100,000Debt 30,00 0,000 Equity 5. Based on the table, what is the leverage ratio at the bank? A) 3 B)4.67 C)5 D) 10 6. Based on the table, what is the reserve-deposit ratio at the bank? A) 3 percent. B) 5 percent. C) 10 percent. D) 15 percent 7. Based on the table, owners' equity will fall to zero if loan defaults reduce the value of total assets by...
Assets Cash Last National Bank Balance Sheet 1 Liabilities and net worth Checkable $ 19.000 $ 115,000 deposits $ 98,000 Stock shares 280,000 $ 278,000 S Reserves Property Instructions: Enter your answers as whole numbers. a. Suppose a depositor at the bank writes a check for $25,000 to a contractor to pay for some remodeling work done on her home. The contractor deposits the check in his bank (which is a different bank). What will last National Bank's balance sheet...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities and net worth Reserves $ 107,500 Checkable $ 120,000 deposits Loans $ 28,500 Stock shares $ 290,000 Property $ 274,000 Suppose the bank decides to invest 40 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at...
The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Liabilities and net worth Checkable deposits $ Reserves 69,500 97,000 $ 42,500 Stock shares $ Loans 220,000 $ 205,000 Property Suppose the bank decides to invest 80 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at a...
Most questions answered within 3 hours.
-
You working as a clinical engineer dealing with
autoclaves, xrays and life care machines, in what...
asked 1 minute from now -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 10 minutes ago -
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 8 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 13 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 27 minutes ago -
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 28 minutes ago -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 30 minutes ago -
What are the differences between an antibiotic, a semisynthetic,
and a synthetic as types of antimicrobials?
asked 26 minutes ago -
One mole of oxygen gas is at a pressure of 5.90 atm and a
temperature of...
asked 34 minutes ago -
The primary side of a transformer has 935 turns and is connected
to 118 Volts A/C....
asked 32 minutes ago -
This must be done in Java and it must contain a public static
void (string []args)...
asked 36 minutes ago -
An economy has a Cobb–Douglas production function:
Y=Kα(LE)1−αY=Kα(LE)1−α
The economy has a capital share of 0.30,...
asked 51 minutes ago