ABE Banc has the following asset categories Cash 15 million Securities 42

# Abe banc has the following asset categories cash 15

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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