Banking requirements Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves$200 Deposits 200 Deposits $675 Loans $800 Debt $250 Securities $1,000 Capital (owners' equity) $1,075
Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and (increase/decrease) the (capital / debt / deposits / loans / reserves) account.
This would also bring the leverage ratio from its initial value of (1.86/ 1.95/ 3.96/ 5.35) to a new value of _______ (1.86/ 1.95/ 3.96/ 5.35).
Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.
___ The total value of liabilities
___ The size of the monetary base
___ The return on each asset