Community Center Bank earned 6% on its assets and paid 5% on its liabilities in year one. The bank was facing reinvestment risk. In year two, the bank had a negative profit spread of 100 basis points. Which of the following is true? In year two
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- The balance sheet below represents the current financial situation of a commercial bank named Novatia Bank. Suppose that a 15-year-old takes the $150 cash that she received for her birthday and deposits it in her checking account at Novatia Bank. Assets Cash: $650 Property: $1050 What will happen to the bank's liabilities after the $150 deposit. Balance Sheet Deposits increase cash assets, so they do not affect the liabilities side of a bank's balance sheet. The value of checkable deposits will decrease by $150. The value of checkable deposits will increase by $150. The value of stock shares will decrease by $150. The value of stock shares will increase by $150. Liabilites Stock Shares: $950 Checkable Deposits: $750 What will happen to the bank's assets after the $150 deposit? The value of propery holdings will decrease by $150. The value of cash holdings will increase by $150. The value of cash holdings will decrease by $150. Since deposits are a liability, there is no change to the…The bank's assets are $1M of cash, $50M of commercial loans, $9M of Treasury bonds, and $100M of mortgages. The bank also has $140M of non-transaction deposits and $10M of preferred stock that matures in ten years. The allowance for loan losses is $3M. a. Calculate the total assets 1. b. Calculate the risk-adjusted assets 120 c. What are the common equity Tier I (CET1) risk-based capital ratio, Tier I risk-based capital ratio, the total risk-based capital ratio, and the total capital (leverage) ratio?Give correct typing answer with explanation and conclusion What are the strengths and weaknesses of investment performance of Foreign & Colonial Investment Trust PLC for 2019 to 2021.
- The following financial statement is for the current year. From the past, you know that 10% of fixed-rate mortgages prepay each year. You also estimate that 10% of checkable deposits and 20% of savings accounts are rate sensitive. Second National Bank Assets Liabilities Reserves $ 1,500,000 Checkable Deposits $ 15,000,000 Securities Money Market Deposits $ 5,500,000 1 Year $ 6,000,000 Savings Accounts $ 8,000,000 1 to 2 Years $ 8,000,000 CDs 2 years $ 12,000,000 Variables-rate $ 15,000,000 Residential Mortgages 1 Year $ 22,000,000 Variables-rate $ 7,000,000 1 to 2 Years $ 5,000,000 Fixed-rate $ 13,000,000 2 years $ 2,500,000 Commercial Loans Fed Funds $ 5,000,000 1 Year $ 1,500,000 Borrowings 1 to 2 Years $ 18,500,000 1 Year $ 12,000,000 2 years $ 30,000,000 1 to 2 Years $ 3,000,000 Buildings, etc. $ 2,500,000 2 years $ 2,000,000 Bank Capital $ 5,000,000 Total $100,000,000 Total $100,000,000 (a) What is the current Income GAP for Second National Bank? (b) What will…DMacroeco X + A learn.vccs.edu/courses/362470/quizzes/2905964/take E Apps M Gmail YouTube Maps Get My Payment | . Question 13 Which of the following will yield to a bank the lowest return? O Short term loans with little risk. Long term loans with a lot of risk. There is no distinction in the types of loans and risk or potential return. Loans made where the liquidity rate is the highest. Question 14 2 pts The Federal Reserve has the duty of regulating the nation's money supply. True False Question 15 2 pts P Type here to searchSome bank has assets totaling $1B. This bank has $25M in capital, and earned $10M last year. What is this bank’s earnings-to-capital ratio and equity multiplier?
- 15. If a bank’s return on assets (ROA) is 1%, and its asset-to-equity ratio (equity multiplier) is 10, then the bank’s return on equity (ROE) is Question 15 options: a) 100%. b) 5%. c) 1%. d) 10%.10. . First national bank has liabilities of $1.5 million and owner’s equity of $550,000. First National Bank’s assets are: $100,000. $700,000. $950,000. $2,050,000.ABC bank has assets of 180 million and a a net income after taxes of $4 million; and bank capital of $14 million. a. What is the bank's return on assets. b. What is the bank's debt-to-equity ratio?
- “Bank managers should always seek the highest returnpossible on their assets.” Is this statement true, false, oruncertain? Explain your answerV1 Consider a bank with the following balance sheet: Assets-150 Liabilities-110 Capital-40 a) What is this bank’s leverage ratio? A. 0.27 B. 0.36 C. 2.75 D. 3.75 E. 13.63 b) Suppose that the bank’s assets earn 3% interest and the bank’s liabilities pay 2% interest, what is the bank’s expected profit per unit of capital? A. 0.01 or 1% B. 0.0336 or 3.36% C. 0.0575 or 5.75% D. 0.2667 or 26.67% E. 0.3636 or 36.36%1. A bank reports the following items on its latest bat ance sheet allowance for loan and lease losses. $42 million, undivided profits, $81 million; subordinated debt capital. S3 million common stock and surplus, $27 million; equity notes, $2 million; minor. ity interest in subsidiaries, S4 million; mandatory convertible debt, s5 million; identifiable intangible assets, $3 million and noncumulative perpetual preferred stock, S5 million. How much does the bank hold in Tier 1 capital? In Tier 2 capital? Does the banks have 100 much Tier 2 capital?