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Use the balance sheet below (for the friedman National Bank) to answer the next series of questions. Assume the reserve requirement is 10% against DD and the capital requirement is 10%(of total assets)
Assets Liabilities plus Capital
Cash $ 5,000 Demand Deposits (consumers) $ 50,000
Federal Reserve account $ 35,000 Demand Deposits (Business Firms) $100,000
Securities $ 60,000 Time and saving deposit $75,000
Loans $ 100,000 Capital $ 25,000
Building $ 50,000
Total $250,000 Total $ 250,000
Question 19, 20 and 21 are fill in questions, Indicate your answer in the space provided.
9. Friedman National has excess reserve of…………………………………………
20. The maximum new loan that Friedman National can make without incurring a required reserve deficiency is……………………………………..
21. Friedman National’s Holding of earning assets are:……………………………………
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