Balance sheet for springtime national bank

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The balance sheet for Springtime National Bank as of yesterday is shown below. Use it to answer the questions that follow. The required reserve ratio is 12%.

Asset

Liabilities

Vault Cash

405,000

Checkable Deposits

6,291,000

Reserves at the Fed

500,500

Saving Deposits

11,900,000

30 day Treasury Bills

5,300,000

Long-term Time Deposits

10,500,000

10 year Treasury Bonds

6,200,500

Discount Loans

0

Mortgages

21,500,000

Federal Funds loans

1,500,000

Federal Funds loans

0

Bank Capital

3,715,000

 

b. From the original balance sheet, suppose that Springtime had to write down $1,700,000 in mortgage loans due to foreclosures. How would that change their balance sheet?

Reference no: EM13915548

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