Q5.First National Bank has the following balance sheet and faces a required reserve ratio on depositsof 10%:AssetsReserves $50 millionSecurities $50 millionLoans $100 millionLiabilitiesDeposits $150 millionBank capital $50 million1. This banks earn $10 million as an annual after-tax profit. Calculate ROA (return on asset) andROE (return on equity) for both banks.2. Assume that depositors withdraw $60 million and the bank experience a $30 million loansdefault. How should the bank balance sheet change?

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Description: Q5.First National Bank has the following balance sheet and faces a required reserve ratio on depositsof 10%:AssetsReserves $50 millionSecurities $50 millionLoans $100 millionLiabilitiesDeposits $150 millionBank capital $50 million1. This banks earn

Return on assets (ROA) and return on equity (ROE):Financial ratios such as return on assets (ROA)…

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First National Bank has the following balance sheet and faces a required reserve ratio on deposits 10%: Assets Reserves $50 million Securities $50 million Loans $100 million Liabilities Deposits $150 million Bank capital $50 million

First National Bank has the following balance sheet and faces a required reserve ratio on deposits 10%: Assets Reserves $50 million Securities $50 million Loans $100 million Liabilities Deposits $150 million Bank capital $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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The table gives information from a bank's balance sheet. Calculate the bank's loans, securities, and reserves. The bank's loans are $ million. The bank's securities are $ million. The bank's reserves are $ million. Item (millions of dollars) Checkable deposits 500 Savings deposits 600 Small time deposits 500 Loans to businesses 1,050 Government securities 500 Currency 20 Reserves at the Fed 30
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The first California Bank has $1.5 million in total reserves and $4 million in checking account balances. What is the bank’s reserve position if the required reserve ratio (rD) is 20%? (i.e., What is the level of required reserves and the level of excess reserves?)
Second National Bank has Reserves (Cash) of $25,000 and Demand Deposits of $100,000. The Required Reserve Ratio is 25%. Households deposit $4,000 in currency into their Checkable Deposit accounts at Second National Bank (remember that the bank's balance sheet must remain in balance). How much Excess Reserves does Second National Bank now have?
Argentina Company reported the following accounts on December 31, 20X1: Cash on hand 1,000,000 Petty cash fund 50,000 Security Bank current account 2,000,000 PNB current account 1,500,000 BDO current account (overdraft) (200,000) BSP treasury bill – 120 days 3,000,000 BPI time deposit – 90 days 2,000,000 Bond sinking fund 2,500,000 The cash on hand included a customer-posted check of P150,000 and postal money order of P50,000. The BPI time deposit is set aside for the acquisition of land to be made in early January 20X2. The bond sinking fund is set aside for payment of bond payable due December 31, 20X2. Compute the amount of Cash and Cash equivalents that should be reported on December 31, 20X1.
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Balance Sheet (in thousands) Assets Rate Earned (%) Cash and due from banks $ 6, 400 0 Investment securities 26, 000 9 Repurchase agreements 16,000 7 Loans less allowance for losses 84,000 11 Fixed assets 14, 000 0 Other earning assets 4, 600 10 Total assets $ 151,000 Liabilities and Equity Rate Paid (%) Demand deposits $ 13,000 0 NOW accounts 73, 000 6 Retail CDs 22,000 8 Subordinated debentures 18, 000 9 Total liabilities 126,000 Common stock 14, 000 Paid - in capital surplus 3,400 Retained earnings 7,600 Total liabilities and equity $ 151, 000 If the bank earns $124,000 in noninterest income, incurs $84,000 in noninterest expenses, and pays $2,540,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)
Please do fast ASAP fast
Old National Bank has the following sources of funds: $ 694 million in capital and surplus, $425 million in demand deposits, $770 million in time and savings deposits, and $250 million in subordinated debt. What is the maximum dollar amount Old National Bank may lend to a single customer? Final answer only
2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.
Chang Co. issued a $59,741, 120-day, discounted note to Guarantee Bank. The discount rate is 8%. Assuming a 360-day year, the cash proceeds to Chang Co. are:
A firm's balance sheet has the following data: $450,000 25,000 125,000 560,000 Cash on hand Market securities Net accounts and notes receivable Retailers' inventories
A bank is earning 6% on its $150 million in earning assets and is paying 4.75% on its liabilities. The bank's Net Interest Margin is __________________. A. 6.00% B. 10.75% C. 4.75% D. 1.25%

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