Suppose that apart from having its own bank capital, a bank finances itself purely with...
50.1K
Verified Solution
Link Copied!
Question
Finance
Suppose that apart from having its own bank capital, a bank finances itself purely with deposits. Its bank capital is 80 USD. The reserve requirement is 10%. The bank holds 20 USD in reserves, out of which 10 USD are excess reserves. The bank has lent 85 USD to its customers. It also holds some financial securities and owns some equipment. We know that the financial securities are worth double the value of the equipment. How much is the bank's equipment worth?
A. 50 USD B. 10 USD C. There is not enough information provided to calculate the value of equipment D. 75 USD E. 12.5 USD F. 25 USD
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
