Use T-accounts to show the impact of deposits withdrawals of 350 million from DIs on balance sheets of customers, the Central bank and DIs, monetary base and money stock if required reserves ratio is 0.1, excess reserves ratio is 0.05 and currency ratio is 0.10.
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Use T-accounts to show the impact of deposits withdrawals of 350 million from DIs on balance sheets of customers, the Central bank and DIs, monetary base and money stock if
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- Suppose that Bank of America sells $10 million in Treasury bills to PNC Bank. Use T-accounts to show the effect of this transaction on the balance sheet of each bank Bank of America Assets Liabilities Reserves Securities PNC Bank Liabilities Reserves SecuritiesUsing T-accounts, demonstrate the impact on reserves, checkable deposits, and the monetary base when a bank depositor withdraws RM5,000 of currency from his account.Show the Bank’s balance sheet if the Bank purchases liabilities to offset a net deposit drain of $10 million (required reserves ratio 7%):
- In the following, assume that the required reserve ratio is 5%. a. With T-Accounts (like the ones below), show the immediate effect of a $1000 Open Market Purchase by the Fed from a member of the public who deposits the Fed's payment into a checking account at the AAA Bank. AAA Bank Fed Fed Assets Liabilities Assets LiabilitiesWhat does the Accounts Receivable Turnover measure? Group of answer choices a)The net realizable value of Accounts Receivable b)The dollar amount of funds tied up in Accounts Receivable c)How quickly a company collects Accounts Receivable d)The average days for cash collection.Let us assume that a bank acquired reserves and deposits equal to ₱1,000 with a required reserve of 10% as imposed by the central bank. Solve for the amount of money that the bank can lend, given the reserves that are legally required to support the ₱ 1,000 deposit and the money multiplier
- You are an investor looking to contribute financially to either company A or Company B. The following, select financial information as follows. Company A and company B, respectively: Beginning Account Receivable $ 50,000, 60,000; Ending Account Receivable $ 80,000, 90,000; Net credit sales $ 550,000, $460,000. Based on the information provided: compute the account receivable turnover ratio. Compute the number of days sales in receivables ratio for both companies A and company B ( round all answers to two decimals places) Interpret the outcomes stating which company you would invest in and why.Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 40Deposits 215Loans 160 Securities 40Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)Show the Bank’s balance sheet if the Bank purchases liabilities to offset a net deposit drain of $10 million (required reserves ratio 7%): Assets :Cash $10Traiding portfolio $15Loans $50Investment portfolio $25Liabilities and Equitites:Deposits $68Interbank loans $20Equity $12
- The first California Bank has $1.5 million in total reserves and $4 million in checking account balances. What is the bank’s reserve position if the required reserve ratio (rD) is 20%? (i.e., What is the level of required reserves and the level of excess reserves?)For the purpose of stating the working capital of WWE Inc. on December 31,2021, the following data are submitted: Cash in bank, net of bank overdraft of P500,000 P5,000,000 Petty cash (unreplenished petty cash expenses, P10,000) 50,000 Notes receivable 4,000,000 Accounts receivable, net of accounts with credit balances of P1.5M 6,000,000 Inventory 3,500,000 Bond sinking fund 3,000,000 Total current assets P21,550,000 Accounts payable, net of…a)Calculate the equity (total asset –total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) b)Calculate the duration and convexity of the both asset and liability sides; c)If the interest rates go up by 1%, using the duration and convexity ruleto determine the net worth of the bank and the equity to asset ratio; d)In c)’s scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise? e)Do you agree with the following statement? Explain why.“The information about a bond’s duration and convexity adjustment is sufficient to quantify interest rate risk exposure.” please can you answer part d and e