Simpson National Bank Balance Sheet 12 13 14 15 16 17 18 19 20 21...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Simpson National Bank Balance Sheet 12 13 14 15 16 17 18 19 20 21 Liabilities: Assets: Deposits: Cash Reserves Vault Cash Deposit with Federal Reserve Loans: Mortgage Loans Business Loans Personal Loans TOTAL LOANS OUTSTANDING $ 55,000 $ 5,000 Currency $17,000 $ 84,000 $ 165,000 $29,000 Savings Accounts Deposits Money Market Deposits Demand/Checkable Deposits 30,000 95,000 $ 120,000 $ 278,000 300,000 300,000 TOTAL LIABILITIES: TOTAL ASSETS: 23 24 2. Suppose that the bank decides to keep TWICE as much in reserves than what is required by law (6 points) 25 26 27 28 a. What is the new reserve ratio? b. What is the new reserve total, including the additional demand deposit of $7,500? c. What is the new value of the money multiplier
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
