Suppose that apart from having its own bank capital, a bank finances itself purely with...
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Finance
Suppose that apart from having its own bank capital, a bank finances itself purely with deposits. Its bank capital is 80 USD. The reserve requirement is 10%. The bank holds 20 USD in reserves, out of which 10 USD are excess reserves. The bank has lent 85 USD to its customers. It also holds some financial securities and owns some equipment. We know that the financial securities are worth double the value of the equipment. How much is the bank's equipment worth?
A. 50 USD B. 10 USD C. There is not enough information provided to calculate the value of equipment D. 75 USD E. 12.5 USD F. 25 USD
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