Consider the balance sheet for River City Bank below. Use the information in the balance...
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Accounting
Consider the balance sheet for River City Bank below. Use the information in the balance sheet to answer the following question. Assume the reserve requirement is 10% on checkable deposits. River City Bank What is the level of the Bank's capital? Jose, a checking account holder, withdraws $5000 from his account. How does this affect the Bank's assets and liabilities? Does the bank face an immediate problem as a result of this transaction? If so, what can the Bank do to overcome this problem? Assume that because of a recession there is widespread default. $50,000 of the loans go bad and need to written off. Does the Bank face a problem? What could the Bank have done to avoid this
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