Question: The table below is the balance sheet for the Senators Bank. The target reserve ratio is 10% (1) Assets Reserves (2) La $ Liabilities /
The table below is the balance sheet for the Senators Bank. The target reserve ratio is 10% (1) Assets Reserves (2) La $ Liabilities / Equity Demand deposits Shareholders' equity $340, $ 3 Loans $50,000 250,000 60,000 70,000 90,00 Securities Fixed assets Total $430,000 Yotal 5430.000 a. The size of the bank's excess reserves is $ b. Change the balance sheet in columns (1) to show the effect of the bank loaning out an amount equal to its excess reserves, c. Now change the balance sheet in columns (2) to show the effect of a cheque for the amount of the loan in part by cleaning past the bank d. Suppose instead that the target reserve ratio is 20%. What is the bank's reserve situation, and what action will it take? in the amount of $ and will need to click to select The Senators Bank is Click to select by $
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