Suppose the bank decides to invest 45 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at a different bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the table below. Assume a required reserve ratio of 10 percent. The balance sheet for ACME Bank is shown below. The balance sheet for ACME Bank is shown below.ACME Bank Balance Sheet 1AssetsReservesLoansProperty$$$AssetsReservesLoansSecuritiesPropertyLiabilities and net worth70.000 Checkabledeposits$$35,000 Stock shares293,000Suppose the bank decides to invest 45 percent of its excess reserves in short-term securities in order to earn interest. The bank issuesa cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at adifferent bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the tablebelow. Assume a required reserve ratio of 10 percent.98,000300,000Instructions: Enter your answers as whole numbers.ACME Bank Balance Sheet 2Liabilities and net worth56.410 Checkable$ 98,000deposits35.000 Stock shares $ 300,000$$$ 13.590$ 293,000

Excess reserves refer to the surplus funds that banks hold above the mandatory reserves set by…

Answered: Suppose the bank decides to invest 45…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Suppose the bank decides to invest 45 percent of its excess reserves in short-term securities in order to earn interest. The bank issues a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at a different bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the table below. Assume a required reserve ratio of 10 percent. The balance sheet for ACME Bank is shown below.

The balance sheet for ACME Bank is shown below.
ACME Bank Balance Sheet 1
Assets
Reserves
Loans
Property
$
$
$
Assets
Reserves
Loans
Securities
Property
Liabilities and net worth
70.000 Checkable
deposits
$
$
35,000 Stock shares
293,000
Suppose the bank decides to invest 45 percent of its excess reserves in short-term securities in order to earn interest. The bank issues
a cashier's check to a securities dealer to purchase the securities. The securities dealer deposits the check into an account at a
different bank. What will ACME Bank's balance sheet look like after the check has been processed? Fill in the values in the table
below. Assume a required reserve ratio of 10 percent.
98,000
300,000
Instructions: Enter your answers as whole numbers.
ACME Bank Balance Sheet 2
Liabilities and net worth
56.410 Checkable
$ 98,000
deposits
35.000 Stock shares $ 300,000
$
$
$ 13.590
$ 293,000

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