Figure 103: (Source: Federal Reserve Economic Data, St A) What Is the Bank's Net Worth?
B) If the Federal
Figure 10.3:
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider the hypothetical bank balance sheet below to answer the following questions.
Table 10.3: Hypothetical Bank Sheet ($ millions)
A) What is the bank's net worth?
B) If the reserve requirement is 5 percent, what is the amount of "excess reserves" held by this bank?
C) What is this bank's leverage ratio?
D) If the bank's investments fall by $1,000, what is the bank's equity? Leverage ratio?
Correct Answer:
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