Question 1 Hypothetical Bank Limited operating in Morocco had a sudden deposit withdrawal worth MAD 5 Million, which was paid off using its reserves. The before and after T-accounts are presented below. Before Deposit Withdrawal After Deposit Withdrawal Assets Assets Liabilities Liabilities Reserves MAD 5M Deposits 50M MAD Reserves OM MAD Deposits MAD 45M Loans MAD Bank Capital MAD Loans MAD Bank Capital MAD 10M 8M 10M 8M Securities MAD Securities MAD 30M 30M In order to manage its liquidity, the bank has 4 options available. Please create separate T- accounts below showing the relevant changes for each option

Question 1 Hypothetical Bank Limited operating in Morocco had a sudden deposit withdrawal worth MAD 5 Million, which was paid off using its reserves. The before and after T-accounts are presented below. Before Deposit Withdrawal After Deposit Withdrawal Assets Assets Liabilities Liabilities Reserves MAD 5M Deposits 50M MAD Reserves OM MAD Deposits MAD 45M Loans MAD Bank Capital MAD Loans MAD Bank Capital MAD 10M 8M 10M 8M Securities MAD Securities MAD 30M 30M In order to manage its liquidity, the bank has 4 options available. Please create separate T- accounts below showing the relevant changes for each option

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question 2 The following information was taken from the books of Zia Traders on 30 June2019:1. The items appearing on the bank reconciliation statement of Zia Traders asat 31 May 2019.Details Amount(R)Balance as per bank statement (unfavourable) 25 400Outstanding deposit 5 700Outstanding cheques:CHQ116 1 430CHQ135 2 780Correction of incorrect cheque (see note 2.5 below) 570Balance as per bank account ?2. A comparison of the cashbooks for June, the above bank reconciliationstatement and the bank statement for June showed the following:2.1 Provisional totals in the cashbooks on 30 June: Cashbook Receipts R 113 200 Cashbook Payments R 96 0002.2 The outstanding deposit at the end of May for R5 700 appeared onthe bank statement on 5 June 2019.2.3 Cheque number CHQ135 appeared on the bank statement on7 June for R3 100. An investigation revealed that the bankstatement amount was correct.2.4 Cheque number CHQ116 still did not appear on the bank statementfor June 2019. The cheque was…
MC37 In preparing its August 31, 2020 bank reconciliation, Jade Company has available the following information: Balance per bank statement, 8/31/2020 — P180,500 Deposit in transit,8/31/2020 — P32,500 Return of costumer's NSF check, 8/31/2020 — P6,000 Outstanding checks, 8/31/2020 — P27,500 Bank service charges for August — P1,000 At August 31, 2020, Jade Company's correct cash balance is? (with solution) a. P192,500 b. P185,500 c. P179,500 d. P178,500
Use T-accounts to show the impact of deposits withdrawals of 350 million from DIs on balance sheets of customers, the Central bank and DIs, monetary base and money stock if required reserves ratio is 0.1, excess reserves ratio is 0.05 and currency ratio is 0.10.
Balance sheet ($ million) Cash $10 50 Loans Securities 15 Deposit Equity $68 7 The bank is expecting a $15 net deposit drain. Show the bank's balance sheet if: a. The bank purchases liability to offset this expected drain. b. The bank uses the asset side liquidity to finance this expected drain.
PROBLEM 1 Argentina Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Security bank current account PNB current account BDO current account (overdraft) BSP treasury bill - 120 days BPI time deposit - 90 days Bond sinking fund P1,000,000 50,000 2,000,000 1,500,000 (200,000) 3,000,000 2,000,000 2,500,000 • The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. • The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021. • The BPI time deposit is set aside for acquisition of land to be made in early January 2021. • The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total amount of cash and cash equivalents. 3. Explain the presentation of the items excluded from cash and cash equivalents.
As on 31 May 2020 the deposits awaiting clearance is RO15,240 and cheques yet to be presented for payment is RO17,590; while the bank balance as recorded in the Cash book was RO 5,480. How much should be the bank balance as on 31 May 2020 as per bank statement? a. RO 6130 b. RO 6130 Overdraft c. RO 7830 d. RO 7830 overdraft -fast-
Question 1The bank portion of the bank reconciliation for Ivanhoe Company at October 31, 2017, is as follows. IVANHOE COMPANYBank ReconciliationOctober 31, 2017Cash balance per bank $12,497.90Add: Deposits in transit 1,530.2014,028.10Less: Outstanding checks Check NumberCheck Amount2451 $ 1,260.402470 684.202471 844.502472 435.752474 1,050.004,274.85Adjusted cash balance per bank $9,753.25 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits. Bank StatementChecksDepositsDateNumberAmountDateAmount11-1 2470 $ 684.20 11-1 $ 1,530.2011-2 2471 844.50 11-4 1,211.6011-5 2474 1,050.00 11-8 990.1011-4 2475 1,640.70 11-13 2,575.0011-8 2476 2,830.00 11-18 1,472.7011-10 2477 600.00 11-21 2,945.0011-15 2479 1,720.00 11-25 2,567.3011-18 2480 1,330.00 11-28 1,650.0011-27 2481 695.40 11-30 1,186.0011-30 2483 575.50 Total 16,127.9011-29 2486 940.00Total $12,910.30 The cash records per books for…
Question 1 Please use an example to explain the process that the banking system uses to create money. Assume in your example that Bank 1 receives $1,200 from Firm A and sets up a checking account (demand deposits) for Firm A. Three firms, i.e., Firm A, Firm B, and Firm C, will be included in the process. Also assume that Bank 1, Bank 2, and Bank 3 all hold 12% in reserves and lend out the remaining demand deposits to corporations to earn interests.
PROBLEM NO. 2 Shown below is the bank reconciliation for ABC Company for November 2020: Balance per bank, Nov. 30, 2020 Add: Deposits in transit Total Less: Outstanding checks P150,000 24,000 174,000 P28,000 10.000 Bank credit recorded in error 38,000 P136,000 Cash balance per books, Nov. 30, 2020 The bank statement for December 2020 contains the following data: P110,000 Total deposits Total charges, including an NSF check of P8,000 and a service charge of P400 96,000 All outstanding checks on November 30, 2020, including the bank credit, were cleared in the bank in December 2020. There were outstanding checks of P30,000 and deposits in transit of P38,000 on December 31, 2020. Questions: Based on the above, answer the following: A. How much is the cash balance per bank on December 31, 2020? B. How much is the cash balance per books on December 31, 2020? C. The adjusted cash in bank balance as of December 31, 2020?
thempt 1 You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all exces reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 12%, how much will your deposit increase the total value of checkable bank deposits? 0.14 Incamect If the reserve requirement is 4%, how much will your deposit increase the total value of checkable deposits? 0.04 $. Inomect Increasing the reserve requirement increases. the Incorect money supply.
Assets- reserves: 75000 loans : 430000 liabilities : deposites : 500000 net worth : 5000 a) Suppose that a bank has the following balance sheet and you deposit $5000 in currency into your cheque account at such bank. Use a T-account to show the initial impact of this transaction on the bank’s balance sheet. What is the impact of this transaction on M1? (b) If the bank holds a reserve ratio of 0.1, what is the maximum amount the bank can loan out. Suppose that the bank intends to loan out the maximum amount it can. Show the impact of the loan on the balance sheet.
Use the following data to answer the below question. Required reserve $50 Checkable deposits $500 Savings Deposits $50 Excess reserves $180 Currency held by the public $160 The money multiplier is 1.69 The Fed conducts an open market purchase of $81. What will be the change in the money supply $ 136.89 answer? /Round to 2 decimal places/ What is the change in checkable deposits? 103.85 These are the correct answers and I know that 1.69 * $81 = $136.89, but I don't know how to get the 103.85 change in checkable deposits. Please help

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