Subject:eco
Transcribed Image Text:Use the information presented in Northeastern Mutual Bank’s balance sheet to answer the following questions.
Assets
Reserves
Loans
Bank’s Balance Sheet
$125
$625 Debt
Securities $500 Capital (owners’ equity)
Liabilities and Owners’ Equity
$1,250
Deposits
$75
-$75
Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy securities in the name of the bank. This would
increase the securities account and
the
account.
The total value of liabilities.
This would also bring the leverage ratio from its initial value of
Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply
The size of the monetary base
The riskiness of each asset
to a new value of
Assets
Reserves
Loans
Bank’s Balance Sheet
$125
$625 Debt
Securities $500 Capital (owners’ equity)
Liabilities and Owners’ Equity
$1,250
Deposits
$75
-$75
Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy securities in the name of the bank. This would
increase the securities account and
the
account.
The total value of liabilities.
This would also bring the leverage ratio from its initial value of
Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply
The size of the monetary base
The riskiness of each asset
to a new value of
