1. The balance sheet of Baby Bank, NA is as follows. Balance Sheet of Baby...
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1. The balance sheet of Baby Bank, NA is as follows. Balance Sheet of Baby Bank, NA December 31, 2019 Assets Liabilities and Equities Loans G-Bonds Deposits Equities If the Loan interest rate is 10 percent, then customers will demand $80 of loans. If the Deposit interest rate is 6 percent, then customers will supply $105 of deposits. Assume that the bank has Equity of $25. a. How much G-bonds Baby Bank need to hold to make the balance sheet balanced? b. How much are
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