Question: I need these two graph questions as together, they are one big question. I give fast thumbs up! Following two questions are based on the

Following two questions are based on the balance sheet of Bank Q: millions Assets Liabilities millions Reserves $20 Transaction deposits Loans $400Non transaction deposits Securities $100 Borrowings Equity capital Total $520Total Assume that the reserve requirement for Bank Q is 10%. $100 $300 $95 $25 $520 Show how each of the following transactions will alter Bank Q's balance sheet. Just use T- account i.e. only show changes in appropriate items. (No need to write down the whole balance sheet) There are a few possible correct answers, 4. Bank Q participates in open market purchase by the Federal Reserve worth of $50 million. millions millions Assets Reserves Loans Securities Liabilities Transaction deposits Non transaction deposits Borrowings Equity capital Total Total 5. PNC Corp. transfers $5 million from its savings account and buys Certificate of Deposit with Bank Q, worth of $5 million. millions millions Assets Reserves Loans Securities Liabilities Transaction deposits Non transaction deposits Borrowings Equity capital Total Total
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
