Assume that ABC bank has $10 in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a substantial withdrawal of $3M. Consider cost and customer service you1 are required to adjust the balance sheet after the withdrawal. The bank has no desire to borrow. List the new values for assets and liabilities after the withdrawal Assets Liabilities Deposits Required 3,000,000 10,000,000 reserve Loans 20,000,000 12,000,000 35,000,000 Capital 25, 000,000 Securities Total 35,000,000
Assume that ABC bank has $10 in deposits, with a required reserve ratio of 10% it is holding $3M in required reserve. There is a substantial withdrawal of $3M. Consider cost and customer service you1 are required to adjust the balance sheet after the withdrawal. The bank has no desire to borrow. List the new values for assets and liabilities after the withdrawal Assets Liabilities Deposits Required 3,000,000 10,000,000 reserve Loans 20,000,000 12,000,000 35,000,000 Capital 25, 000,000 Securities Total 35,000,000
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 16P: Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and...
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