Oldhat Financial starts its first day of operations with $12 million in capital.
ID: 1192251 • Letter: O
Question
Oldhat Financial starts its first day of operations with $12 million in capital. A total of $125 million in checkable deposits are received. The bank makes a $30 million commercial loan and another $60 million in mortgages, with the following terms: 200 standard 30-year,fixed-rate mortgages with a nominal annual rate of 5.25%, each for $300,000.Assume that required reserves are 8%.
Complete the bank's balance sheet provided 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
Assets
Liabilities
Required reserves
$
million
Checkable deposits
$
million
Excess reserves
$
million
Bank capital
$
million
Loans
$
million
Explanation / Answer
Assets Amount Liabilities Amount Required Reserves 11 Checkable Deposits 125 Excess Reserves 36 Bank Capital 12 Loans 90 Total 137 Total 137