Question

NewBank started its first day of operations with ​$144 million in capital. A total of ​$106 million in checkable deposits is received. The bank makes a ​$28 million commercial loan and another ​$24 million in mortgage loans. The required reserve ratio is 9.4​%. ​(​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		​$	million	Checkable deposits		​$	million
Excess reserves		​$	million	Bank capital		​$.	million
Loans		​$.	million

Answer 1

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Answer:

Balance sheet on first day (figures in million)
Reserve	$9.964		Checkable deposit	$106
Excess reserve	$158.036		Capital	$144
Loans	$52

Reserve = Reserve reqt % *checkable deposits = 9.4%*106 = 9.964

Loans = Commercial loan + mortgage = 28+24 = 52

Excess reserve = Deposit + Capital - reserve - loan = 106+114-9.964-52 = 158.036