Use the information presented in northeastern mutual bank's balance sheet to answer the following questions.
bank's balance sheet
assets liabilities and owners' equity
reserves $150 deposits $1,200
loans $600 debt $200
securities $750 capital (owners' equity) $100
suppose a new customer adds $100 to his account at northeastern mutual bank, which the owners of the bank then use to make $100 worth of new loans. this would increase the loans account and (increase/decrease) the (debt, capital, deposits, loan, reverse) account.
this would also bring the leverage ratio from its initial value of to a new value of .
which of the following is true of the capital requirement?
check all that apply.
o its intended goal is to protect the interests of those who hold equity in the bank.
o the amount of capital required depends on the type of assets the bank holds.
o it specifies a minimum leverage ratio for all banks.