Business, 24.04.2021 02:20 jacksontwyford

Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 percent. Complete the following T-account for BSB. Beleaguered State Bank Assets Liabilities Reserves $100 million Deposits $500 million Loans $400 million Now suppose that BSB's largest depositor withdraws $25 million in cash from her account. BSB decides to restore its reserve ratio by reducing the amount of loans outstanding. Complete BSB's new T-account after it has taken this action. Beleaguered State Bank Assets Liabilities Reserves $95 million Deposits $475 million Loans $380 million Because BSB is cutting back on its loans, other banks will find they haveinsufficient reserves, causing them todecrease their loans. BSB may find it difficult to cut back on its loans immediately because it cannot force people to pay off loans. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply. a. Attract additional deposits
b. Borrow money from another bank
c. Borrow money from the
d. Fed Lend money

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Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 perc...