Question: Question 3 Sunshine Bank has the following list of entries on its balance sheet. All figures are in million dollars. Mortgage loans 2,100 Cash reserves

Question 3

Sunshine Bank has the following list of entries on its balance sheet. All figures are in million dollars.





    Mortgage loans                                                                   2,100

    Cash reserves                                                                          630

    Shareholders’ equity                                                               600

    Foreign currency reserves                                                    6,000

    Government deposits                                                               180

    Deposits at the Bank of Canada                                              150

    Demand deposits                                                                  4,500

    Notice (term) deposits                                                          3,600

                                                                                                                                   

3.1 Draw the balance sheet for Sunshine Bank and record the entries appropriately in the asset or liability column.

3.2 What are the total assets and liabilities for this commercial bank?

3.3 What is the bank’s actual reserve ratio?

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