Question 1: Consider the T-account for Rosa's bank, the Olympia Credit Union. Show how the direct deposit of $1,500 (drawn on her employer's bank) into Rosa's checking account affects the bank balance sheet. First, show how this transaction affects Olympia Credit Union's liabilities. Then, show how this transaction affects the bank's required reserves. Finally, calculate the excess reserves. Be sure to use minus (-) signs to indicate decreases.
Question 2:
Consider the T-account for the employer's bank, Washington National. Show how the direct deposit of $1,500 to Rosa (deposited into her bank) drawn on her employer's checking account affects Washington National Bank's balance sheet. First, show how this transaction affects Washington National's liabilities. Then, show how the transaction affects its reserves. Be sure to use minus (-) signs to indicate decreases.