Chp 8: Homework i Saved 6 The table below is the balance sheet for the Senators Bank. The target reserve ratio is 8%. 10 Assets (1) (2) Liabilities / Equity (1) (2) points Reserves $70,000 $ 70,000 $ 30,400 Chequing deposits $380, 000 $ 410,400 $ 380,000 Loans 250,006 280,400 280,400 Shareholders' equity 70, 000 70,000 70,000 Securities 75, 000 Fixed assets 55,606 eBook Total $450, 006 Total $450,006 a. The size of the bank's excess reserves is $ Print b. Change the balance sheet in columns (1) to show the effect of the bank loaning out an amount equal to its excess reserves. References C. Now change the balance sheet in columns (2) to show the effect of a cheque for the amount of the loan in part (b) clearing against the bank. d. Suppose instead that the target reserve ratio is 18%. What is the bank's reserve situation, and what action will it take? The Senators Bank is (Click to select) v ] by $ and will need to |(Click to select) in the amount of $