6. ABE Banc has the following asset categories:Cash$1.5 millionSecurities$4.2 millionLoans?Other assets $3 millionTotal assets?a. What would be the bank’s total assets if loans were twice the size of the amount ofsecurities?= b. If total assets were $12 million, what would be the amount of the loans?= c. If total assets were $11 million, and $1 million of securities were sold with theproceeds placed in the cash account, what would be the amount of the loans? =$ 7. Following are selected balance sheet accounts for the Third State Bank: vault cash = $4million; U.S. government securities = $5 million; demand deposits = $14.5 million; nontransactional accounts = $20 million; cash items in process of collection = $4 million; loans to individuals = $7 million; loans secured by real estate = $10 million; federal funds purchased = $4 million; and bank premises = $11 million. a. From these accounts, select only the asset accounts and calculate the bank’s total assets. b. Calculate the total liabilities for the Third State Bank. $ 38million c. Based on the totals for assets and liabilities, determine the amount in the owners’ capital account. 8. A bank has $10 million in vault cash and $112 million in deposits. If total bank reserves were$16 million with $2 million considered to be excess reserves, what required reserves ratio is implied?
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- Fall '19
- Federal Reserve System, Third State Bank, Dell National Bank