Question 3 Sunshine Bank has the following list of entries on its balance sheet. All figures are

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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?

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders , Marcia Cornett

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Posted Date: Aug 17, 2020 08:58 AM

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Question 3 Sunshine Bank has the following list of entries on its balance sheet. All figures are

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

Expert Answer:

Answer 31 Balance sheet Asset millions Liabilities millions Mortgage loans 2100 Sha... View the full answer

Financial Markets and Institutions

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