Essay
Consider the hypothetical bank balance sheet below to answer the following questions. 
a.What is the bank's net worth?
b.If the reserve requirement is 5 percent,what is the amount of "excess reserves" held by this bank?
c.What is this bank's leverage ratio?
d.If the bank's investments fall by $1,000,what is the bank's equity? Leverage ratio?
Correct Answer:
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a.Net worth = Assets - Liabilities = $11...View Answer
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Correct Answer:
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