The following balance sheet is available for Smith Bank (in millions). Which of the following is true? Assets Potential Potential Amount Liabilities Potential Potential Amount Rate Withdrawal in Rate Withdrawal in Change 6-month millions Change 6-month millions 90-day Treasury Bills 0.50% $25 30-day CDs 0.25% $50 180-day Treasury Bills 0.75% $35 90-day CDs 0.35% $100 1-year Treasury Bills 1.00% $50 Savings Deposits 0.10% $50 1-year consumer loans 1.25% 20% $200 Time-Deposits 180-day 0.60% $200 5-year Consumer loans 1.50% 20% $150 Time Deposits -2 years 1.00% 30% $235 10-year Corporate Loans 1.75% 15% $250 Stockholder's equity $75 Total $710 Total $710 Including potential withdrawals and excluding savings deposits, the six-month earnings at risk is $238,750 Including potential withdrawals and including savings deposits, the six-month earnings at risk is $188,750 Including potential withdrawals and including savings deposits, the six-month earnings at risk is $205,500 Including potential withdrawals and including savings deposits, the six-month earnings at risk is $436,250
QUESTION 5
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The following
balance sheet is available for Smith Bank (in millions). Which of the following is true?Assets Potential Potential Amount Liabilities Potential Potential Amount Rate Withdrawal in Rate Withdrawal in Change 6-month millions Change 6-month millions 90-day Treasury Bills 0.50% $25 30-day CDs 0.25% $50 180-day Treasury Bills 0.75% $35 90-day CDs 0.35% $100 1-year Treasury Bills 1.00% $50 Savings Deposits 0.10% $50 1-year consumer loans 1.25% 20% $200 Time-Deposits 180-day 0.60% $200 5-year Consumer loans 1.50% 20% $150 Time Deposits -2 years 1.00% 30% $235 10-year Corporate Loans 1.75% 15% $250 Stockholder's equity $75 Total $710 Total $710 Including potential withdrawals and excluding savings deposits, the six-month earnings at risk is $238,750
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $188,750
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $205,500
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $436,250
option A is wrong
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