. A bank has the following:high-quality liquid assets (HQLA) worth $62 million.Non liquid assets of $15 mln.•••Stable deposits of $20 minWholesale Short term deposits of $10 mln$ 50 mln in anticipated net cash flows over a 60 day stress period$39 million in anticipated net cash flows, over a 30-day stress period:Calculate the Liquidity Coverage RatioO 210%O 124%O 164%O 159%

The correct answer is Ο 159%.Explanation:Certainly! Let's calculate the Liquidity Coverage Ratio…

Answered: . A bank has the following:…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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c) If the interest rates go up by 1%, using the duration and convexity rule to determine the net worth of the bank and the equity to asset ratio d) In c)’s scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise? D) IS IN NEED ONLY. plz show the process.
With a reserve requirement of 7.81% and an initial deposit of $2,840, the total amount of money that could be in the money supply is closest to A. $36,364. B. $25,480. C. $22,180. D. $3,062.
H1. A bank bill with a face value of $250,000 was issued today and it matures in 60 days' time. If interest rates are 4.5% p.a. what amount of cash does the issuer receive today? Show proper step by step calculation
aa.2
Balance sheet ($ million) Cash $10 50 Loans Securities 15 Deposit Equity $68 7 The bank is expecting a $15 net deposit drain. Show the bank's balance sheet if: a. The bank purchases liability to offset this expected drain. b. The bank uses the asset side liquidity to finance this expected drain.
2) Calgary Finance Bank has the following balance sheet: Assets Liabilities $100 $1000 Chequable Deposits Capital $1000 $100 Reserves Loans Assume there is no excess reserve. One day Jack luckily finds a bill of $20 underneath his mattress and he deposits it into this bank. a) Describe how this deposit may affect Calgary Finance Bank's balance sheet. b) What will be the excess reserve now? c) To keep reserve ratio at target level, what would this bank do? How would the action affect its balance sheet? d) If all commercial banks have the same target reserve ratio as this bank, and there is no cash drain, what will be the change in total deposits for the whole banking system after the process of money creation is completed?
17. Assume that a bank obtains most of its funds from long-term borrowed funds such as Federal Home Loan Bank borrowings. The bank's assets are in the form of loans with rates that adjust affected if interest rates every three months. In the next three months, the bank would be increase. A. negatively. B. favorably. C. unaffected.
Need answers for D. 1, D. 2, and D. 3
Am. 113.
1. Reserves Securities Loans a, This balance sheet shown is for the entire banking system. Oll figures are in billions of dollars. The reserve ratio is 25 percent. b. $160 $200 $160 Assets Excess reserves in this commercial banking system are The monetary multiplier is (1) Required reserves in this commercial banking system are $ Liabilities + Net Worth Checkable deposits $520 Billion billion. billion (1') The maximum additional amount the banking system might lend is $_ Show in columns 1 and 1' how the consolidated balance sheet would look after this additional amount has been lent. The M1 money supply is defined as cash held by the public plus (loans/checkable deposits). Pick one.
Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 20 percent. Assets Liabilities and net worth (2) (1) (2) Reserves $ 26,000 38,000 36,000 Checkable deposits $ 100,000 Securities Loans Instructions: Enter your answers as a whole number. a. What is the maximum amount of new loans that Big Bucks Bank can make? 2$ Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additiona amount by inserting the new values into the gray shaded cells of the given table. b. By how much has the money supply changed?
In the example below, we will use year-end assets. Bank A receives $70 in deposits at 5% and, together with 40 in equity, makes a loan of $90 at 7%. The remaining of assets is G-Bond. We will ignore taxes for the moment. Bank A Cash Reserves for Deposit ? Loan 7% $90 G-Bond 5% ? Deposits 5% $70 Equity $40 Total Assets $? Total Equity and Deposit $110 If Cash Reserves for deposit is at least 8% of the deposit under the Basel Accord, how much of the G-Bond Bank A should purchase? $17 $14 $16 $18 $20 $15 $19 $21

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