Question

Oldhat Financial starts its first day of operations with 59 million in capital. A total of 5125 million in checkable deposits are received. The bank makes a $25 million commercial loan and another $60 million in mortgages, with the following terms: 200 standard 30-year, fixed-rate mortgages with a nominal annual rate of 5 25%, each for $300,000. Assume that required reserves are 8% Complete the bank's balance sheet provided below. (Round your responses to the nearest whole number) Assets Required reserves S Excess reserves Loans million Llabilities Checkable deposits Bank capital million million million mion

Answer 1

LIABILITIES

1. Checkable Deposits = 125 million$

2. Bank Capital = 9 million $

ASSETS

1.Required Reserves = 10 Million $ (8 % of Checkable deposits)

2.Excess Reserves = 39 Million $ (Liabilities - Loans & Required Reserves)

3.Loans = 85 million $ (Commercial loan 25 Million$ + Mortgage loan 60 Million $)

Now,

Total Liabilities = 134 Million $

Total Assets = 134 million $

Assets = Liabilities

Good luck!!!!