The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Reserves...
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The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Reserves Loans Property $ Liabilities and net worth Assets Reserves Loans Securities Property 70,000 Checkable deposits 33,000 Stock shares i 215,000 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 a different bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the table below. Assume a required reserve ratio of 25 percent. Instructions: Enter your answers as a whole number. ACME Bank Balance Sheet 2 98,000 220,000 Liabilities and net worth Checkable deposits Stock shares The balance sheet for ACME Bank is shown below. ACME Bank Balance Sheet 1 Assets Reserves Loans Property $ Liabilities and net worth Assets Reserves Loans Securities Property 70,000 Checkable deposits 33,000 Stock shares i 215,000 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 a different bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the table below. Assume a required reserve ratio of 25 percent. Instructions: Enter your answers as a whole number. ACME Bank Balance Sheet 2 98,000 220,000 Liabilities and net worth Checkable deposits Stock shares
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Checkable deposits 98000 Reserve ratio 25 Required reserve 25100 x 98000 2... View the full answer
Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
Posted Date:
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