Question 6 : 10 points Bank A has the following balance sheet as at December...
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Question 6 : 10 points Bank A has the following balance sheet as at December 31 2019: Reserves $20m Securities $40m Loans $140m Deposits $150m Capital $50m. a. List the above in a T account b. If the required reserve is 10% calculate the excess reserve, if any A client withdrew $ 10m. reflect this transation in the balance sheet. Calculate the new reserve. How much is the excess reserve if any? a. If there is a reserve deficiency show the possible actions of the bank and wich one is most likely to take effect? .. Assume that one of the clients of bank declared bankruptcy and $60m of loans were wiped out. Show the change in the balance sheet. Comment generally on the overall bank health
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