A banks total assets equal 1 billion. It's Liabilities equal 1 billion. Transaction deposits equal 500 million, loans equal 700 million and securities equal 250 million.

A: If the banks only other liabilities are savings deposits, what is the value of these savings deposits?

B: If the banks only other assets are vault cash and reserve deposits with a Federal Reserve bank, what is the total amount of these assets?

A: To find the value of savings deposits, we need to calculate the remaining liabilities of the bank.

First, we subtract the known liabilities (transaction deposits) from the total liabilities to get the remaining liabilities: 1 billion - 500 million = 500 million.

Since the only other liabilities are savings deposits, we can conclude that the value of savings deposits is equal to the remaining liabilities. Therefore, the value of the savings deposits is 500 million.

B: To find the total amount of vault cash and reserve deposits with a Federal Reserve bank, we need to calculate the remaining assets of the bank.

First, we subtract the known assets (loans and securities) from the total assets to get the remaining assets: 1 billion - 700 million - 250 million = 50 million.

Since the only other assets are vault cash and reserve deposits, we can conclude that the total amount of these assets is equal to the remaining assets. Therefore, the total amount of vault cash and reserve deposits is 50 million.