entire windfall. The reserve requirement is currently 10 percent. What is the immediate impact on the balance sheet of the bank?
Reserve Account = 10% * 100,000 = $ 10,000
Cash Account = $ 100,000- $10,000 = $ 90,000
Liability account = $ 100,000
Mention each account affected and the appropriate amount. The Reserve account of the company is increased by $ 10,000; cash account of the bank is increase by $ 90,000, while the liability of $…
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