Question 1 Hypothetical Bank Limited operating in Morocco had a sudden deposit withdrawal worth MAD 5 Million, which was paid off using its reserves. The before and after T-accounts are presented below. Before Deposit Withdrawal After Deposit Withdrawal Assets Assets Liabilities Liabilities Reserves MAD 5M Deposits 50M MAD Reserves OM MAD Deposits MAD 45M Loans MAD Bank Capital MAD Loans MAD Bank Capital MAD 10M 8M 10M 8M Securities MAD Securities MAD 30M 30M In order to manage its liquidity, the bank has 4 options available. Please create separate T- accounts below showing the relevant changes for each option
Question 1 Hypothetical Bank Limited operating in Morocco had a sudden deposit withdrawal worth MAD 5 Million, which was paid off using its reserves. The before and after T-accounts are presented below. Before Deposit Withdrawal After Deposit Withdrawal Assets Assets Liabilities Liabilities Reserves MAD 5M Deposits 50M MAD Reserves OM MAD Deposits MAD 45M Loans MAD Bank Capital MAD Loans MAD Bank Capital MAD 10M 8M 10M 8M Securities MAD Securities MAD 30M 30M In order to manage its liquidity, the bank has 4 options available. Please create separate T- accounts below showing the relevant changes for each option
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 1
Hypothetical Bank Limited operating in Morocco had a sudden deposit withdrawal worth MAD
5 Million, which was paid off using its reserves. The before and after T-accounts are presented
below.
Before Deposit Withdrawal
After Deposit Withdrawal
Assets
Assets
Liabilities
Liabilities
Reserves
MAD
5M
Deposits
50M
MAD
Reserves
OM
MAD Deposits MAD
45M
Loans
MAD
Bank Capital MAD
Loans
MAD
Bank Capital MAD
10M
8M
10M
8M
Securities
MAD
Securities MAD
30M
30M
In order to manage its liquidity, the bank has 4 options available. Please create separate T-
accounts below showing the relevant changes for each option
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