Question

NewBank started its first day of operations with

​$115115

million in capital. A total of

​$109109

million in checkable deposits is received. The bank makes a

​$2727

million commercial loan and another

​$2929

million in mortgage loans. The required reserve ratio is

9.69.6​%.

​(​Note:

Information is based on​ NewBank's first month of​ operations.)

Complete​ NewBank's balance sheet shown​ below: ​(Round your responses to the nearest whole​ number.)

Assets				Liabilities
Required reserves		​$nothing	million	Checkable deposits		​$nothing	million
Excess reserves		​$nothing	million	Bank capital		​$nothing	million
Loans		​$nothing	million

Answer 1

Assets				Liabilities
Required reserves = 109 x 9.6%	$            10	million		Checkable deposits	$          109	million
Excess reserves (balancing)	$          158	million		Bank capital	$          115	million
Loans (27 + 29)M	$            56	million
Total	$          224	Million		Total	$          224	Million