ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- c14. You have savings accounts at two separately FDIC insured banks, ABC Bank and XYZ bank. At ABC your account has a balance of $200,000. At XYZ bank the account balance is $60,000. a. If both banks fail how much will you receive? b. You find out that ABC and XYZ banks are going to merge. If you are concerned about the possibility of the new bank failing what would you do?arrow_forwardA bank has a reserve ratio of 10 percent, and it has received $5,000 of deposits. What is the bank's assets? Group of answer choices It has $500 in reserves and $4,500 in loans. It has $50 in reserves and $4,950 in loans. It has $50 in reserves and $5,000 in loans. It has $10 in reserves and $4,990 in loans.arrow_forwardOnly typed answerarrow_forward
- Reserves $ 100 Checkable Deposits 1,000 300 Loans (to customers) Property Securities (owned) Stock Shares 400 300 100 Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's assets are $1,100. liabilities are $1,100. net worth is $300. profit is $1,000.arrow_forwardUse the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and the асcount. This would also bring the leverage ratio from its initial value of to a new value of Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The size of the monetary base The total value of liabilities The return on each assetarrow_forwardA3arrow_forward
- 22. Which of the following entries would appear on the liabilities side of a commercial bank's balance sheet? Government of Canada securities demand deposits cash reserves mortgage loans foreign currency reservesarrow_forwardPlease no written by hand Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank’s Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and ? the ? account. This would also bring the leverage ratio from its initial value ? of to a new value of ? . Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The total value of liabilities The riskiness of each asset The size of the monetary basearrow_forwardWhat are the primary differences between different types of banks (savings, commercial, investment, contractual, intermediary, national, credit unions, etc.)? How are insurance companies acting in the capacity of banks?arrow_forward
- 11arrow_forwardIf a customer came into the bank to withdraw more from their demand deposits than the bank currently has on hand in vault cash, what are the sources for getting the cash to cover the withdraws(Check ALL That Apply)? Print New Money Borrow from another Bank Borrow from the Federal Reserve Convert(Liquidate) Loansarrow_forwardUse 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. thearrow_forward
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