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    Balance Sheets of Assets and Liabilities

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    Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits.

    Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.

    Acct Name $$

    Acct Name $$

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    Solution Preview

    Dear Student:

    In this problem we are creating a balance sheet for a new bank, Banc One.

    Step 1. Banc One receives a primary deposit of $1 million from a customer. This money is a cash asset for the customer and a liability for the bank in a ...

    Solution Summary

    This solution illustrates the balance sheet of a newly established bank, showing assets and liabilities of a bank, taking into account the required reserve requirement (20%) of the bank.