Banks own and owe several different types of assets and liabilities. For various reasons, banks...

Question

Banks own and owe several different types of assets and liabilities. For various reasons, banks prefer certain assets and liabilities over others. The following questions distinguish among different types of bank assets and liabilities.
2.1. Consider the following assets and liabilities:
I. Discount loans II. U.S. government securities III. Secondary reserves IV. Small time deposits V. Commercial loans VI. Savings accounts
Bank liabilities include: 0 A. II, III, and V only 0 B. II, III, and V only 0 C. I, IV, and VI only 0 D. I, III, and V only 0 E. I, II, IV, and VI only

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David · Accepted Answer

Problem No 2.1 
C. I, IV and VI only 
Problem No 2.2 
E. Reserves, US government securities, and consumer loans 
Problem 5.1 
Capital = $3,000 ($7000 reserve) 
Problem 5.2 
FALSE 
Problem 5.3 
E. So that it can remain solvent

Banks own and owe several different types of assets and liabilities. For various reasons, banks prefer certain assets and liabilities over others. The following questions distinguish among different...

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