Use the information presented in Midwestern Mutual Bank\'s balance sheet to answ

Question

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 $125 Deposits $575 Loans $600 Debt $200 Securities $150 Capital (owners'equity) $100 Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 of new loans. This would increase the loans account and (increase/decrease) the (deposits/debt/capital/loans/reserves) This would also bring the leverage ratio from its initial value of (9.75/13.15/8.75/10.85) 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 return on each asset [ ] The size of the monetary base

Explanation / Answer

increase/deposits/8.75/the return on each asset

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