Show the bank balance sheet after the transaction

Assignment Help Financial Accounting
Reference no: EM132538795

Below is balance sheet for Alliance Bank Berhad. The required reserve ratio on deposits is 12%.

Alliance Bank Berhad

Assets ($ million)                   Liabilities ($ million)

Reserves 50                        Deposits 320

Loans 200

Securities 150                    Net Worth 80

Question i) Calculate the bank's excess reserves.

Question ii) Suppose Alliance Bank Berhad loans all its excess reserves to Fargo Lighting Ltd. Show the bank's balance sheet after this transaction.

Question iii) Suppose Alliance Bank Berhad sells $75 million of securities to the central bank. If the currency ratio is 0.4 and the excess reserve ratio is 0.04, by how much money supply will change resulting from this transaction?

Reference no: EM132538795

Questions Cloud

What is the annual return for bond : Suppose that an investor with an 8-year investment horizon is considering purchasing a ten-year 9% coupon bond selling at par (coupons are paid semiannually).
Compute the number of statues the company must sell : Using the contribution margin approach, compute the number of statues the company must sell to (a) break even and (b) earn a profit of $50,000
Which is not required to be recognised by the acquirer : At acquisition date which of the following is not required to be recognised by the acquirer? goodwill separately from the identified assets acquired.
Why has an increasing share of household : Why has an increasing share of household savings been channelled through financial intermediaries? Hint: Comment on the role of financial intermediaries.
Show the bank balance sheet after the transaction : Suppose Alliance Bank Berhad loans all its excess reserves to Fargo Lighting Ltd. Show the bank's balance sheet after this transaction.
Calculate price of the stock : Calculate price of the stock and justify your decision for invest in Aramit Cement. (CMP= Tk. 92)
What amount of discount should be amortized : The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount should be amortized
How many years will it take for erika : If the two women's funds earn the same returns in the future as in the past, how many years will it take for Erika to become a millionaire?
Provide a simple working cloud implementation : Provide a simple working cloud implementation, and submit the contents in a ZIP file to Canvas, along with a presentation video

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd