Question

Assuming the only other thing Tazian Banks have on their balance sheets is loans, what is the value of existing loans made by Tazian Banks?

Answer 1

Singleton Bank's balance sheet shows $1 million in reserves and a $9 million loan made to Hank's Auto Supply, with the total deposits being $10 million.

Step-by-step explanation:

The question relates to the balance sheet of Singleton Bank and the value of loans it has on its books. Based on the provided information, Singleton Bank has altered its assets, now having $1 million in reserves and a $9 million loan to Hank's Auto Supply, with $10 million in deposits. These figures are indicative of the bank's assets and liabilities, with deposits being a liability and loans being an asset. It's important to understand that banks also participate in the primary and secondary loan markets, making and selling loans which can influence their value on the balance sheet