--%>
Assignment Help - homework help

Question on balance sheet of Yukon Bank

Assume the Yukon Bank has the given simplified balance sheet. The reserve ratio is 6.25 %.

16_simplified balance sheet.png

Determine the maximum amount of new loans which this bank can make? Illustrates in column 1 how the bank's balance sheet will seem after the bank has loaned this added amount.

E

Expert

Verified

Desired reserves are 6.25% of $100,000 will be $6,250.

Actual reserves is $22,000

Desired reserves is $ 6,250

Excess reserves is $15,750

The maximum amount of new loans the bank may make =$15,750. The new balance sheet is illustrated in column 1 above.

 

   Related Questions in Finance Basics

  • Q : Determine equilibrium quantity

    Following equations denote market for widgets Demand: P = 10 - Q Supply: P = Q - 4 Here P mentions the price in dollars per unit and Q mention the quantity in thousands of units. A

    		•
  • Q : Define the term Unencumbered Balance

    Define the term Unencumbered Balance: It is the balance of an appropriation not so far committed for particular purposes.

    		•
  • Q : Define Fund Balance Fund Balance : For

    Fund Balance: For accounting aims, the excess of a fund’s assets over its liabilities. And for budgeting aims, the surplus of a fund’s resources over its expenses.

    		•
  • Q : Define Employee Compensation or

    Employee Compensation or Retirement: Salary, advantage, employer retirement rate contribution adjustments, and any other associated statewide compensation adjustments for the state employees. Different 9800 Items of the Budget Act suitable funds for c

    		•
  • Q : Reimbursement Warrant or Revenue

    Reimbursement Warrant (or Revenue Anticipation Warrant): A warrant which has been sold by the State Controller’s Office, as an outcome of a cash shortage in th

    		•
  • Q : Alphas balance of payments Normal 0

    Normal 0 false false

    		•
  • Q : Explain regulations Regulations: It is

    Regulations: It is a rule, order, or standard of common application issued by a state agency to interpret, implement, or make specific law enforced or managed by it, or to govern its measures. With state government, the procedure of adopting or modify

    		•
  • Q : Describe Section 1.50 Section 1.50 : It

    Section 1.50: It is a section of the Budget Act which A) Identifies a certain style and format for the codes employed in the Budget Act, B) Authorizes the Department of Finance

    		•
  • Q : Sizes of the MPC and MPS Normal 0 false

    Normal 0 false false

    		•
  • Q : Question on hypothetical economy Normal

    Normal 0 false false