Business, 12.08.2020 04:01, dewaynesmith46
Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
Bankâs Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $200 Deposits $2,000
Loans $1,000 Debt $150
Securities $800 Capital (owners' equity) -$150
Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and the account.
a. increase
b. decrease
i. capital
ii. debt
iii. deposits
iv. loans
v. reserves
This would also bring the leverage ratio from its initial value of to a new value of.
Which of the following is true of the capital requirement?
a. It specifies a minimum leverage ratio for all banks.
b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.
c. Its intended goal is to protect the interests of those who hold equity in the bank.
Answers: 3
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Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following ques...
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