Question

U.S. Treasury bils Demand deposits $16 $35 Mortgage-backed securities Loans from other banks CAl loans $34 $8 $46 Discount loans $8 NOW accounts $42 Savings accounts Reserve deposits with Federal Reserve $10 $9 Cash items in the process of colection Municipal bonds Bank building $10 $5 $4 Use the entries given above to construct the following balance sheet which is similar to the one displayed in the text Liabilities +Bank Capital Assets Total Liabilities Total Assets Bank Capital RNB's capital is what percentage of its assets? Choose from any list or enter any number in the input fields and then continue to the next question
there are two parts to the question

Answer 1

Solution Part a) Liabilities + Bank Capital Amount Particulars Amount 16 Demand Deposits 35 34 Loans from Other Bank 8 46 NOW Account 42 8 Saving Account 10 Assets Particulars U.S. Treasury Bills Mortgage backed securities C&l Loan Discount Loan Reserve deposit with Federal Reserve Cash Item in process of collection Municipal Bond Building Total Assets 95 132 Total Liabilities Bank Capital 37 Part b) Capital to Asset Capital Assets 37 132 28.03% Hence, RNB's Capital is 28.03% of its assets.