+Cash ReservesOf which RequiredASSETSExcess reservesLoansSecuritiesIncludes $10 million USTSMortgagesLoans to other banks$10 million$5 million$5 million$55 million$15 million$12 million$3 millionDemand DepositsSavings DepositsCDsLIABILITIESBorrowing from FROwners' EquityA. Does this bank meet a 10% required reserve requirement? Explain.B. Does this bank meet an 8% capital to asset ratios? Why or why not?$50 million$10 million$20 million$5 million$10 millionC. A new firm comes into town. It is seeking funding to build a new plant. Can this bank competefor that business? How?

The objective of the question is to analyze the bank's balance sheet and determine if it meets…

Answered: + Cash Reserves Of which Required…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Need answers for D. 1, D. 2, and D. 3
(30) Bonds with a face value of $270,000 are issued at 103. The statement of cash flows would report a cash inflow of: A. $278,100 in the financing activities section B. $270,000 in the investing activities section C. $270,000 in the financing activities section D. $8,100 in the financing activities section
How does Long-Term Bank Loan impact Avett Inc.'s 2020 Statement of Cash Flows? Question 10 options: The periodic change in Long-Term Bank Loan is added in Cash Flows from Operations The periodic change in Long-Term Bank Loan is added in Cash Flows from Financing The periodic change in Long-Term Bank Loan is subtracted in Cash Flows from Financing The periodic change in Long-Term Bank Loan is added in Cash Flows from Investing The periodic change in Long-Term Bank Loan is not included on the Statement of Cash Flows The periodic change in Long-Term Bank Loan is subtracted in Cash Flows from Operations The periodic change in Long-Term Bank Loan is subtracted in Cash Flows from Investing
Am. 113.
Risk Weight Bank Liabilities $ Bank Assets Cash and Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages $ 2,700 CMOS Commercial Loans Agricultural Loans Allowance for Loan Loss Bank Buildings Total $ 2,000 $ 1,000 $ 1,500 0% Deposits 20% Hot Money 20% Subordinated Debt 8,000 2$ 6,000 24 250 50% Common Stock 2$ 100 $ 2,500 $ 1,500 $ 2,100 $ (300) $ 2,000 $ 15,000 50% Surplus 100% Retained Earnings 2$ 300 2$ 350 100% 0% 100% 2$ 15,000 1. Calculate the minimum leverage capital for this bank.
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.
Calculate bank’s ratio of Tier 1 capital to risk-weighted-assets and total capital to risk-weighted-assets under the terms of Basel 1 Agreement by using the following information. On Balance Sheet Items (Assets) Amount $ Cash 4,000,000 U.S Treasury securities 30,600,000 Deposit balances due from other banks 4,000,000 Loans secured by first liens on residential property (1-4 family dwellings) 66,000,000 Loans to corporations 105,300,000 Off Balance Sheet Items Standby letters of credit backing municipal bond 20,500,000 Long term unused loan commitments to corporate customers 25,500,000 Tier 1 capital 7,500,000 Tier 2 capital 5,800,000
Comparative statement of financial position of Alpha Sdn Bhd as at 31 December 2023 and 2022 are as following: 2023 2022 RM million RM million Cash at bank 108.5 50.4 Accounts receivable (less: provision for doubtful debts) 393.0 219.0 Inventories 84.0 134.4 585.5 403.8 Plant and equipment (NBV) 475.6 364.8 Investment in government securities 33.6 33.6 509.2 398.4 Total assets 1,094.7 802.2 Ordinary shares 530.0 290.0 180 million 10% Preference shares 180.0 180.0 Retained earnings 105.0 73.5 815.0 543.5 Accounts payable 205.9 197.8 Tax payable 15.0 10.0 Deferred taxation 37.8 50.9 10% Debentures 21.0…
A bank has interest expense of $150 million, earning assets of $1.4 billion, and a net interest margin of 5.0%. The bank also has interest-bearing liabilities of $1.1 billion. The bank's spread ratio must be O 1.94% 1.10% 2.08% 1.65%
Miracle Bank's balance sheet is the following. Assets Reserves Loans Short-term securities a. 70 Miracle Bank's leverage ratio is Ob. 0.0857 c. 8.57 Miracle Bank Od. 80 Liabilities & Owners' Equity $600 Deposits 6,400 Debt 1000 Capital (owners' equity) $7,000 990 10
10

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