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Oldhat Financial starts its first day of operations with 59 million in capital. A total of 5125 million in checkable deposits
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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!!!!

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