Assets Reserves Loans Bank's Balance Sheet $150 $600 Liabilities and Owners' Equity Deposits Debt Securities $750 Capital (owners' equity) $1,200 Suppose a new customer adds $100 to his account at North Central National Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. The size of the monetary base $200 This would also bring the leverage ratio from its initial value of The reserve requirement $100 The total value of liabilities Which of the following do bankers consider when deciding how to allocate their assets? Check all that apply. to a new value of

Coin Bank has deposits of $350 million. It holds reserves of $30 million and government bonds worth $70 million. If the bank sells its loans at market value of $400 million, what will its total assets equal? $500 million $750 million $450 million $380 million

QUESTION 24 LAST CHANCE BANK OF TOMBSTONE BALANCE SHEET ASSETS LIABILITIES & NET WORTH $900,000 $100,000 $300,000 $3,700,000 $2.000.000 cash in the vault: demand deposits: $5,000,000 deposits at Fed US treasury bonds: loans: Building: capital stock: $2,000,000 TOTALS: $7,000,000 TOTALS: $7,000,000 24. Given a reserve requirement ratio of 10%, what will be the maximum effect on quantity of money in circulation of a Federal Reserve sale of $100,000 worth of government securities directly to a bank? an increase of $100,000 a decrease of $1,000,000 a decrease of $100,000 an increase of $1,000,000

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Use the information given in North Central National Bank's balance sheet to answer the following questions. Assets Reserves Loans Securities Bank's Balance Sheet $200 $800 Liabilities and Owners' Equity $1,600 Deposits Debt $1,000 Capital (owners' equity) $250 $150 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following statements regarding the capital requirement is true? Check all that apply. Its intended goal is to protect the interests of those who hold equity in the bank. It specifies a minimum leverage ratio for all banks. The higher the percentage of assets a bank holds as loans, the higher the capital requirement. the

Part 2 - Practice- Use the balance sheet for Leon’s Bank below to answer the following questions.   Assets Liabilitis Required reserves $1,000 Demand deposits $10,000 Excess reserves $0 Owner’s equity $10,000 Customer loans $8,000     Government securities (bonds) $7,000     Building and fixtures $4,000       1. Calculate the required reserve ratio. Explain how you got your answer.   2. Suppose that an individual deposits $5,000 of cash into her checking account. What is the immediate effect of the cash deposit on the M1 measure of the money supply? Explain.   3. What is the dollar value of the bank’s required reserves after the $5,000 deposit in question #7? Explain.   4. What is the dollar value of the bank’s excess reserves after the $5,000 deposit in question #7? Explain.   5. Calculate the maximum amount that the money supply can change as a result of the $5,000 deposit in question #7. Show your work.

Can someone help solve a-c? please and thank you

The balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets   Liabilities & Net Worth   Reserves 90,000 Checkable Deposits 500,000 Cash 20,000 Stock Shares 270,000 Loans 125,000     Securities 235,000     Property 300,000     1. Based on the balance sheet above, how much money can the bank create? 2. If the bank creates the full amount possible, how much money can the banking system create as a result? 3. If the Federal Reserve raises the reserve ratio to 20%, how much will the bank and banking system be able to create based on the new reserve ratio?

3-4 please

Not sure how to solve