Draw new balance sheet for abc national bank

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Use the following balance sheet for ABC National Bank to answer questions 12 to 16. Assume the reserve requirement is 20 %.

Assets Liabilities

Reserves $27,000 Checkable deposits $110,000

Securities 83,000 Net worth 50,000

Loans 50,000

1. If this bank lends all of the excess money and the loan is cleared (used by the borrower) and deposited in another bank, draw the new balance sheet for ABC National Bank. Securities and net worth remain the same.

Assets Liabilities

Reserves Checkable accounts

Securities 83,000 Net Worth 50,000

Loans

Reference no: EM132506776

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