Suppose that a bank holds  $15m in treasury bonds  $10m in reserves  $30m of checkable deposits  $20m of time deposits  $6m of capital  How much loan does the bank have if we know it doesn't have any other assets or liabilities  Suppose that checkable deposits and reserves pay 0 interest  The interest rate on treasuries is 3% The loan pays 7% Time deposits pay 5% How much profit does the bank make? What is the bank's return on assets? 3.2% 2.9% 3.7% 2.6%

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