ReservesSecuritiesLoansTotalAssetsLoansTotalAssetsThe above balance sheet pertains to a bank. Deposits consist only of demand deposits (checkabledeposits). The required reserve ratio is RRR = 10%. Someone withdraws $40 from her depositaccount. Which of the following balance sheets represents the ultimate balance sheet after thecompletion of this transaction (after the withdrawal takes place and after the bank takes thenecessary steps to comply with the Fed's reserve requirements).Balance Sheet A$50.00 Deposits$30.00 Borrowings$220.00 Bank Capital$300.00 TotalAssetsReserves $10.00Securities$30.00$220.00 Bank Capital$260.00 TotalLiabilities & NWLiabilities & NWReserves $21.00Securities$30.00Loans$220.00Total$271.00Balance Sheet BDepositsBorrowingsDepositsBorrowingsLiabilities & NWBank CapitalTotal$250.00$10.00$40.00$300.00$210.00$10.00$40.00$260.00$210.00$21.00$40.00$271.00 000Balance Sheet ABalance Sheet BReserves $0.00Securities $40.00Loans$220.00Total$260.00Balance Sheet CBalance Sheet DAssetsLoansTotalAssetsReservesSecuritiesBalance Sheet CLiabilities & NW$10.00$10.00$240.00$260.00DepositsBorrowingsBank CapitalTotalBalance Sheet DLiabilities & NWDepositsBorrowings$210.00$10.00$40.00$260.00Bank CapitalTotal$210.00$10.00$40.00$260.00

Correct option is (B) Liabilities Amount ($) Assets Amount ($) Reserves 21 Deposits 210…

The above balance sheet pertains to a bank. Deposits consist only of demand deposits (checkable deposits). The required reserve ratio is RRR = 10%. Someone withdraws $40 from her deposit account. Which of the following balance sheets represents the ultimate balance sheet after the completion of this transaction (after the withdrawal takes place and after the bank takes the necessary steps to comply with the Fed's reserve requirements). Balance Sheet A

The above balance sheet pertains to a bank. Deposits consist only of demand deposits (checkable deposits). The required reserve ratio is RRR = 10%. Someone withdraws $40 from her deposit account. Which of the following balance sheets represents the ultimate balance sheet after the completion of this transaction (after the withdrawal takes place and after the bank takes the necessary steps to comply with the Fed's reserve requirements). Balance Sheet A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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