Question: I need help with 4b and 4c only!!! i already figured out how to do 4a . If someone can at least help me set

 I need help with 4b and 4c only!!! i already figured

I need help with 4b and 4c only!!! i already figured out how to do 4a. If someone can at least help me set it up so I know what exactly to calculate or how to solve them, that would be great! Thank you!

Hi, What other information do you need?

4. a) For the balance sheet below, find the level of equity and the level of excess reserves. Assume that the required reserve ratio is 10%. Excess Reserves =20 Equity = 250 b) Now assume there is a deposit outflow of $100 and the bank sells the minimum amount of bonds to meet the reserve requirement, show the new balance sheet. If you need to add a line item to either side you can do that. Just make sure that in the end, your balance sheet balances. c) Go back to the balance sheet in a). This time, when there is a deposit outflow of $100, the bank borrows to meet the reserve requirement. Show the new values on the balance sheet below. If you need to add a line item to either side you can do that. Just make sure that in the end, your balance sheet balances. 4. a) For the balance sheet below, find the level of equity and the level of excess reserves. Assume that the required reserve ratio is 10%. Excess Reserves =20 Equity = 250 b) Now assume there is a deposit outflow of $100 and the bank sells the minimum amount of bonds to meet the reserve requirement, show the new balance sheet. If you need to add a line item to either side you can do that. Just make sure that in the end, your balance sheet balances. c) Go back to the balance sheet in a). This time, when there is a deposit outflow of $100, the bank borrows to meet the reserve requirement. Show the new values on the balance sheet below. If you need to add a line item to either side you can do that. Just make sure that in the end, your balance sheet balances

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!