Hello:

I have question here, First help to verify if i am answer correctly, if i made a mistake please help me to find the answer if possible.

Also, I have a question why if the owner of the bank borrow $100 to supplement their existing reserves. Why did reserve increase? if increases the debt or liability? I am confused, What is that concept borrow to supplement a reserve?

Thanks

9. IIIIK leverage Use the information presented in Soutl'lwestJern Mutual Bank's balance sheet to answer the Following questions. Bank's Balance Sheet Assets Llablll'lies and Owners' Equity Reserves $200 Deposits $1,600 Loans $300 Debt $250 Securities $1,000 Capital {owners' equity) $150 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and Increase V the debt v account. This would also bring the leverage ratio from Its initial value of 13.33 V to a new value of 14.00 V . Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. [:1 The size of the monetaryr base C] The total value of liabilities The return on each asset