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Business, 07.03.2020 00:16 Shavaila18

Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that follow. Use a required reserve ratio of 10% and assume that the bank keeps no excess reserves.

Wahoo Bank Balance Sheet

Assets Liabilities and net worth

Government $1,600 Liabilities:
securities
Required reserves $400
Excess reserves $0
Loans $ 3,000 Checking deposits $4,000
Net worth $1,000
Total assets $5,000

1.What will change on the balance sheet if Shantee withdraws $200 from her checking account?

Choose one or more:

A. Required reserves decrease by $200.

B. Outstanding liabilities increase by $200.

C. Required reserves decrease by $20.

D. Outstanding liabilities decrease by $200.

2.What will change on the bank's balance sheet if Francisco deposits $500 into his checking account?

Choose one or more:

A. Required reserves increase by $50.00.

B. Outstanding liabilities decrease by $500.

C. Outstanding liabilities increase by $500.

D. Required reserves increase by $500.

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Answers: 1

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Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that fol...

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