NewBank started its first day of operations with $105 million in capital. A tota

Question

NewBank started its first day of operations with $105 million in capital. A total of $106 million in checkable deposits is received. The bank makes a $21 million commercial loan and another $24 million in mortgage loans. The required reserve ratio is 6.3%. (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 $million Required reserves Excess reserves Loans $million Checkable deposits $. million Bank capital $millior $million

Explanation / Answer

Required reserve = $106 million * 6.3% = $6.678 million

Excess reserve = (106+105)-45-6.678 = $159.322 million

Loans= 21+24 = $45million

Checkable deposit = $106 million

Bank Capital = $105 million

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