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Illustrates new balance sheet

Yukon Bank has the given simplified balance sheet. The reserve ratio: 6.25 %. How will the bank's balance sheet show after cheques drawn for the total amount of the new loans have been empty against this bank? Illustrates this new balance sheet in column 2.

1247_simplified balance sheet.png

E

Expert

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After cheques are drawn for the total amount of the loan & cleared against this bank, its balance sheet will look as column 2 below.

967_new bal sheet drawn cheque.png

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