Bank of Brisbane started its first day of operations with $100 million in capital. It received a total of $100 million in checkable deposits. The bank makes a $120 million commercial loan and invests $100 million in shares and $20 million in Treasury bonds. Assume required reserves are 8% of deposits and all remaining assets (if any) are kept as excess reserves; if the bank instead requires more fund, it can borrow from the Bank of Gold Coast at the cash rate of 4%, or it can borrow from the RBA at the borrowing rate of 4.25%. Write the balance sheet of Bank of Brisbane.

When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and thebank chooses not to hold any excess reserves but makes loans instead, then, in the bank'sfinal balance sheetA) the assets at the bank increase by $800,000.B) the liabilities of the bank increase by $1,000,000.C) the liabilities of the bank increase by $800,000.D) reserves increase by $160,000.

Banks may borrow from or lend to another bank in the Australian Cash Market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the lending bank and a(n) ________ for the borrowing bank. A. asset; liability B. liability; asset C. asset; asset D. liability; liability

5. When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000. 6. Which of the following statements are TRUE? A) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds. C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank's balance sheet indicates whether or not the bank is profitable. 7. Which of the following statements is FALSE? A) A bank's assets are its uses of funds. B) A bank issues liabilities to acquire funds. C) The bank's assets provide the bank with income. D) Bank capital is recorded as an asset on the bank balance sheet.

If the Reserve Bank of Australia (RBA) decides to raise the cash rate, the reserves will _______, the monetary base will _______, and the money supply will _______.

If checkable deposits in Bank A total $100 million and the required reserve ratio is 12%, then required reserves at Bank A equalGroup of answer choices$88.0 million$12.0 million$8.8 million$1.2 million