Question

How Banks Work Due Sunday 06.30.19 at 11 45 PM Graded Assignment Average: 122 Attempts A Aa 4. A Bank's Balance Sheet Suppose a group of investors pooled $500,000 and founded Third Fidelity Bank in Memphis, TN. Third Fidelity Bank used $50,000 of this to purchase shares in the St. Louis Federal Reserve Bank. With the remaining $450,000, the bank manager purchased a building, furniture, and equipment for the bank. Use the preceding information to complete the following table showing Third Fidelity Bank's balance sheet. Third Fidelity Bank's Balance Sheet Liabilities and Capital Assets Total Total Now Aluna Ngumi opens a new checking account at Third Fidelity Bank and makes an initial deposit of $150,000 in currency. Fill in the following table to show Third Fidelity Bank's balance sheet just after Aluna's deposit. Third Fidelity Bank's Balance Sheet Liabilities and Capital Assets Total Total One way in which banks, as financial intermediaries, create value for depositors such as Aluna is that they through Grade New Save &Caninu e DELL

Answer 1

Balance sheet of third Fidelity Bank
Assets	Amount	Liabilities & Capital	Amount
Fixed assets	$      450,000.00	Capital	$ 500,000.00
Investment in Shares	$        50,000.00
Total	$      500,000.00	Total	$ 500,000.00

When the deposits are received they are received in cash and they are payable in future therefore they becomes liability of bank.

Balance sheet of third Fidelity Bank
Assets	Amount	Liabilities & Capital	Amount
Fixed assets	$      450,000.00	Capital	$ 500,000.00
Investment in Shares	$        50,000.00	Deposits	$ 150,000.00
Cash and Bank	$      150,000.00
Total	$      650,000.00	Total	$ 650,000.00

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