Cat bank has deposits of $800 million. It holds reserves of $20 million and government bonds worth $60 million. If the bank sells its loans at market value of $700 million, what wil its total assets equal? O $780 million $510 million O $80 million $720 million
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- Stealth bank has deposits of $370 million. It holds reserves of $35 million and government bonds worth $75 million. If the bank sells its loans at market value of $370 million, what will its total assets equal? O $500 million O $480 million O $110 million $370 millionTable 1 First Charter Bank Assets Liabilities Reserves $800 $400 Deposits Net Worth Loans Total $1.200 Total Refer to Table 1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its loans equal Lütfen birini seçin: O A. $600 O B. $900 OC $1,000 O D. $1,800 O E $1400Northern Bank: Balance Sheet Assets Liabilities Deposits Capital $7,000 $1,000 $8,000 Reserves $420 $7,580 $8.000 Loans Refer to the table above. Assume that Northern Bank's target reserve ratio is 8 percent. In order to achieve its target reserve ratio, Northern Bank must and O A. increase its reserves by $140; decrease its deposits by $140 O B. increase its reserves by $280; increase its loans by $380 OC. increase its reserves by $280; decrease its deposits by $280 O D. increase its reserves by $140; decrease its loans by $140 O E. not change its reserves; not change its deposits
- What is the role of a commercial bank? O a. To create money through the banking system O b. To maximize profits for its shareholders O c. To take customers' deposits and make loans O d. All of the answers are correctQuestion 15 Table 29-4 Reserves Loans Assets Bank of Smileville O c. 13.4 percent. O d. 8.7 percent. $4,000 Deposits 46,000 Liabilities $50,000 Refer to Table 29-4. The Bank of Smileville's reserve ratio is O a. 8.0 percent. b. 11.3 percent.Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00O O d. $16.00 O Type here to search 24
- Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)If the reserve ratio for the bank below is 25%, is the bank current over or under reserved at by how much? Assets Liabilities/Equity Demand Deposits Reserves Loans Shareholders' equity Securities Fixed assets Total $50 250 150 50 500 Select one: O a. Over-reserved by $100 O b. Neither over or under-reserved O c. Over-reserved by $50 O d. Under-reserved by $50 e. Under-reserved by $100 Total $400 100 500Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
- Your bank has the following balance sheet: Assets Liabilities Checkable Reserves $90 million $380 million deposits $130 Securities million Loans $200 million Bank capital $40 million If the required reserve ratio is 20%, what will be the size of this bank (as measured by its total assets or liabilities) after $20 million deposit outflow if it just meets reserve deficiency by taking out a discount loan from the Federal Reserve? $402 million $400 million. OOOO $420 million. $412 million.Assume that Bank A holds total reserves of $978, the required reserves are $432 and total deposit is $3,600. If the government purchases bonds worth $260 from Bank A, excess reserves of this bank will increase by O $220 O $246.40 O $227.50 $245 $228.80Reserves $1,000 Loans 7,000 1) 12.5% The First Bank of Ohio O2) 14.3% Assets 3) 87.5% Refer to the above T-account, what is the reserve ratio? Liabilities 4) Cannot determine Deposits $8,000
