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brownox314Lv1
28 Sep 2019
Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
Bank's Balance Sheet
Assets
Liabilities and Owners' Equity
Reserves
$175
Deposits
$575
Loans
$700
Debt
$225
Securities
$875
Capital (owners' equity)
$950
Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and (increase or decrease) the (capital, debt, deposits, loans, reserves) account.
This would also bring the leverage ratio from its initial value of (1.84, 1.95, 3.94, 5.35) to a new value of (1.84, 1.95, 3.94, 5.35).
Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
| Bank's Balance Sheet | |||
| Assets | Liabilities and Owners' Equity | ||
| Reserves | $175 | Deposits | $575 |
| Loans | $700 | Debt | $225 |
| Securities | $875 | Capital (owners' equity) | $950 |
Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and (increase or decrease) the (capital, debt, deposits, loans, reserves) account.
This would also bring the leverage ratio from its initial value of (1.84, 1.95, 3.94, 5.35) to a new value of (1.84, 1.95, 3.94, 5.35).
Chika IlonahLv10
28 Sep 2019
