Refer to the exhibit. If Bank QRS's assets rise by 3 percent and its liabilities rise by 2 percent, by what percentage would its bank capital change compared to its original bank capital (i.e., the value originally in blan Balance Sheet Bank QRS ($ millions) Assets Reserves (A) Checkable Deposits $ 150 Loans Liabilities 200 Nontransaction Deposits 50 Securities 60 Borrowings Total Assets $284.5 Bank Capital a. 5.7 percent b. 5.0 percent c. 1.0 percent Od. 6.2 percent 6 (B)

Cornerstones of Financial Accounting
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Author:Jay Rich, Jeff Jones
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Chapter8: Current And Contingent Liabilities
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Problem 72E: Ratio Analysis Intel Corporation provided the following information on its balance sheet and...
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Question 3:
Refer to the exhibit. If Bank QRS's assets rise by 3 percent and its liabilities rise by 2 percent, by what percentage would its bank capital change compared to its original bank capital (i.e., the value originally in blank (B))?
Balance Sheet
Bank QRS
($ millions)
Assets
Reserves (A)
Loans
200
Liabilities
Checkable Deposits $ 150
O a. 5.7 percent
O b. 5.0 percent
O c. 1.0 percent
O d. 6.2 percent
Nontransaction Deposits 50
Securities 60 Borrowings
Total Assets $284.5 Bank Capital
6
(B)
Transcribed Image Text:Question 3: Refer to the exhibit. If Bank QRS's assets rise by 3 percent and its liabilities rise by 2 percent, by what percentage would its bank capital change compared to its original bank capital (i.e., the value originally in blank (B))? Balance Sheet Bank QRS ($ millions) Assets Reserves (A) Loans 200 Liabilities Checkable Deposits $ 150 O a. 5.7 percent O b. 5.0 percent O c. 1.0 percent O d. 6.2 percent Nontransaction Deposits 50 Securities 60 Borrowings Total Assets $284.5 Bank Capital 6 (B)
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