Figure 103: (Source: Federal Reserve Economic Data, St A) What Is the Bank's Net Worth?
B) If the Federal

Essay

Figure 10.3: (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider the hypothetical bank balance sheet below to answer the following questions.
Table 10.3: Hypothetical Bank Sheet ($ millions) $$\begin{array} { l l | l r } \hline { \text { Column } \mathrm { A } } &{ \text { Column B } } \\\hline \text { Loans } & \$ 6,800 & \text { Deposits } & \$ 7,500 \\\text { Investments } & \$ 3,700 & \text { Short Term Debt } & \$ 300 \\\begin{array} { l } \text { Cash \& } \\ { \text { Reserves } }\end{array} & \$ 1,100 & \text { Long Term Debt } & \$ 1800 \\\hline\end{array}$$
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?