Banking Question 2 Please use the balance sheet for Bank Alpha to answer the questions. Assume Bank Alpha loans all of its excess reserves, and the assets and liabilities balance on the balance sheet. Show all work. Bank Alpha Assets Liabilities Required Reserves Checking Deposits $5,000.00 Loans $27,000.00 Saving Deposits $25,000.00 а. How much is X, the dollar amount of reserves? b. How much is the required reserve ratio? How much is the M? C. Assume Bank Alpha loans its excess reserves to Bank Beta. Next Bank Beta loans their excess reserves с. to Bank Gamma. Please create balance sheets for Banks Beta and Gamma. Assume there are no excess reserves in this banking system.

Introduction: A balance sheet is a financial statement that shows the assets, liabilities, and capital employed by a corporation. One of the three fundamental income statements used to analyze a corporation is the balance sheet. It gives a snapshot of a company's financial position (what it owns and owes) as of the publication. A company's balance sheet is a financial statement that shows its assets, liabilities, equity capital, total debt, and other financial information at a specific point in time. On one side of the balance sheet are assets, while on the other are liabilities. It's the total amount owed to creditors by the company.The following details are given for Bank Alpha: Assets Liability Requires Reserve X Loans $27,000 Checking Deposit $5000 Saving Deposit $25000 Answers a) Required Reserve = Total Deposits - Loans = ($5,000+$25,000) - $27,000 = $30,000 - $27,000 = $3,000 b) Required Reserve Ratio = ReserveTotal Deposit×100 =300030000×100 = 10% Money Multiplier =1Required Reserved Ratio = 10.10 = 10 c) Bank Beta Assets Liabilities Reserve 2700 Deposits 27,000 Loans 24300 Reserves = 10% of 27,000 = 2,700 Excess Reserve = Deposit - Reserve = 27,000 - 2,700 = 24,300 Bank Gamma Assets Liabilities Reserves 2,430 Deposits 24,300 Loans 21,870 Reserves = 10% of 24,300 = 2,430 Loans = 24,300 - 2,430 = 21,870