21' Your bank has the following balance sheet: Assets Reserves $ 50 million. Securities Loans 50 million 150 million Liabilities Checkable deposits $200 million Bank capital If the required reserve ratio is 20%, what impact would an unexpected deposit outflow of $50 million have on the bank's balance sheet? That is, what would the new balance sheet look like? Does the bank have a liquidity issue? Explain. Describetwo actions that you might recommend the bank manager take if there is an unexpected deposit outflow of $50 million? What option would you least prefer to use of all the possible actions a bank might take? 50 million

21' Your bank has the following balance sheet: Assets Reserves $ 50 million. Securities Loans 50 million 150 million Liabilities Checkable deposits $200 million Bank capital If the required reserve ratio is 20%, what impact would an unexpected deposit outflow of $50 million have on the bank's balance sheet? That is, what would the new balance sheet look like? Does the bank have a liquidity issue? Explain. Describetwo actions that you might recommend the bank manager take if there is an unexpected deposit outflow of $50 million? What option would you least prefer to use of all the possible actions a bank might take? 50 million

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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Use the following table to answer the question about the money supply given the following hypothetical data for an economy. Item Billions of Dollars $2,000 350 80 Checkable Deposits Small Time Deposits Currency Held By The Public Savings Deposits, Including Money-Market Deposit Accounts Money-Market Mutual Funds Held By Individuals Money-Market Mutual Funds Held By Businesses 1,300 600 700 Refer to the table above. The size of the M1 money supply is: Select one: O a. $1,940 O b. S2,730 O c. None of the above O d. S2,220 O e. $2,080 Activate Windows Go to Settings to activate
I need both a ) and b)answers i will give upvotes no chatgpt
If a bank quintuples the amount of its capital and ROA stays constant, what will happen to ROE? ROE will to of what the ROE was before the bank quintupled the amount of its capital. 500.0% 50.0% 20.0%
A new bank has vault cash of $2 million and $6 million in deposits held at its Federal Reserve District Bank.If the required reserves ratio is 9 percent, what dollar amount of deposits can the bank have?
13. If a bank has $4,000 of checkable deposits (DD), $3,000 in loans, and a required reserve ratio (rT) of 10 percent. The bank's excess reserves are A) $1,000. DD= 400o 3000 = 1oans B) $600. C) $1,400 D) $3,400
PJ Morgan Bank has bank capital equal to 10% of total assets. Most of its deposits are short-term and adjustable rate. PJ Morgan's assets are long maturity and fixed rate. What is true of the bank? |- Bank capital will fall below 10% of total assets if interest rates increase. II - Bank profits will increase if interest rates drop. III - The bank will have to borrow from the Fed if interest rates increase. IV - The bank has a positive gap. O ,Il and IV O , II, II and IV O l and Il only O , II, and IV
3) Suppose there is a 10% reserve requirement, and the bank has the following Balance Sheet Assets Reserves Loans Securities Liabilities 55M Deposits 250M Bank Capital 45M 350M 50M Now, let's suppose there is a deposit outflow of $60 million. If the bank only finances its reserve shortages by borrowing from the Federal Reserve, show the bank's balance sheet after the deposit outflow and receiving the loan from the Fed.
Use the Table below to answer this question (Table: Bank Balance Sheet) Based on the table, what is the leverage ratio at the bank? Bank Balance Sheet Assets Reserves $10,000 Deposits $100,000 Loans Securities 40,000 10 05 100,000 4.67 Liabilities & Net Worth Debt 20,000 Equity 30,000
Correctly explanation gives
Q2) Suppose $150 of currency is in circulation. What is the banks’ impact on money supply?Calculate the money supply in case of Fractional reserve banking system. Pretend the Reserve Ratio is by 2.5%. 1. Borrowers first withdrew the loan from 1st National Bank and deposited it in 2nd National Bank. 2. Borrowers Took The Loan from 2nd National Bank and Deposited it in 3rd National Bank 3. Then Borrowers withdrew finally the loan from 3rd National Bank and deposited it in 4th National Bank. Questions: A. Open a T Account for each Bank with the previous situations. B. Show the Impact on money supply (How much the $150 of reserves had generated?)
QUESTION 1 a. Hong Leong Bank Berhad has a return on assets of 1 percent and a return on equity of 9 percent. You are required to compute the equity multiplier for the bank. b. Suppose that from a new checkable deposit, Public Bank Berhad holds RM2 million in vault cash, RM8 million on deposit with the Federal Reserve, and RM1 million in required reserves. Given this information, how many percent of a required reserve ratio that Public Bank Berhad faces? c. The yield on a corporate bond is 9% and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.56% is available. Which security is better buy?
What is the money supply of the economy-that which will circulate in the economy

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