Answer the Next Questions Based on the Following Balance Sheet

question 22

Essay

Answer the next questions based on the following balance sheet for a chartered bank.Assume the desired reserve ratio is 33%. (a) What is the amount of excess reserves?
(b) By what amount can this bank safely expand its loans?
(c) By expanding its loans by the amount in part (b), what would its demand deposits equal (if all loans were made to customers holding demand deposits)?
(d) If cheques clear against the bank equal to the amount loaned in (b), how much would remain in reserves and in demand deposits?

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Definitions:

mRNA

Messenger RNA (mRNA) is a type of RNA that carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.

tRNA

Transfer RNA, a form of RNA that carries amino acids to the ribosome during protein synthesis in accordance with the codons of mRNA.

DNA Template

A strand of DNA that serves as a guide for the synthesis of complementary RNA or DNA molecules.

Peroxisomes

Small, membrane-bound organelles present in the cytoplasm of almost all eukaryotic cells, involved in the catabolism of very long chain fatty acids, branched chain fatty acids, D-amino acids, and the reduction of reactive oxygen species - specifically hydrogen peroxide.