Question

26) New Bank, Inc. started its first day of operations with $6 million in bank capital. It received an additional $100 million in checkable deposits. The bank made $25 million worth of commercial loans, and another $25 million in mortgage loans. If required reserves are 8%, what does the bank balance sheet look like?

Answer 1

Souultoo W.N- Calculahon Regrised Reserve Requlaed Resenve Reserve Checkable Percartoge deposits Required Resene= 0 % x $ 100 ion CARven) C P given) Reguiaed Reseve = 0.08 X $100 miluion 8 Mijon Requioed Reaerve - $ milan Calculation Loanu CommurcalMIrge Logn Loans sMilion CAs gven) Logns asmuion+ C As giver Logno So Miuion hN-3 Calulation d ercen Reseve_ Ragured Reseve To tal Liabilities -Loans Excen Rerene Wekrow that Total Arset TO tal LiabiUties. -Bani cabital Chec kabledehosit $6Mruion $100 MIion. To tal Aaets To Hal Agac To tal Aspet O Milltn 2

So, ExcenReaenvR = $l06 miuton- $50 milon-$ miujor (NNI (W.N-2) Excen Reaerve $48 milion New Bank Thc A sseta Liabluties Checlkasle deposib $100 Milim Regured Reaerve $8Miulion Bomk cabital Excen Reaeove $48 Muton 50 muton Loano $106 Milion $106 miulion 치크