The first picture is needed to solve part 2 in the second picture! I need help i

Question

The first picture is needed to solve part 2 in the second picture! I need help in filling up the table in part 2. Also the required reserve ratio is 5%. 5. (Question 5 has two parts) Part 1 of Question 5 (10 points) Below is the Balance Sheet for the Bank of Upland as of O is 5%. Using this information and the Balance Sheet below Bank of Upland Assets Liabilities $50 million Vault Cash $300 million Demand Deposits $130 million Treasury Bonds $45 million Car Loans $10 million Business Loans $30 million Credit Card Loans $10 million on Deposit with he Fed $25 million Mortgages $300 million Total Assets $300 million Total Liabilities

Explanation / Answer

A) ALL values remain the same in the new balance sheet except on the assets side, The value of treasury bonds increases to $150 million from $130 million. and the value of vault cash decreases to $40 million from $50 million and $10 million deposit with FED will be zero .

b) TOtal reserves = $300 million

total reserves are the exact amount of demand deposits .

c) required reserves = $15 million.

required reserves = 300* 5% = 300 *5 /100 = 15

d) excess reserves = $285 million.

excess reserves = total reserves - required reserves = > 300 -15 = 285

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