Unibank also needs to review its off-balance-sheet risk. Using the following balance sheet value of UniBank in market value terms (in millions of dollars) Assets Cash Liquid assets Loans Total assets $ 3 30 55 88 Liabilities and equity Deposits Interbank loan Equity Total liabilities and equity In addition, the bank has contingent assets with $50 million market value and contingent liabilities with $80 million market value. Why do over-the-counter contracts carry more contingent credit risk than exchange-traded contracts? $ 35 5 48 88

Unibank also needs to review its off-balance-sheet risk. Using the following balance sheet value of UniBank in market value terms (in millions of dollars) Assets Cash Liquid assets Loans Total assets $ 3 30 55 88 Liabilities and equity Deposits Interbank loan Equity Total liabilities and equity In addition, the bank has contingent assets with $50 million market value and contingent liabilities with $80 million market value. Why do over-the-counter contracts carry more contingent credit risk than exchange-traded contracts? $ 35 5 48 88

Name: Unibank also needs to review its off-balance-sheet risk. Using the fo
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Description: Unibank also needs to review its off-balance-sheet risk. Using the following balance sheet value of UniBank in marketvalue terms (in millions of dollars)AssetsCashLiquid assetsLoansTotal assets$3305588Liabilities andequityDepositsInterbank loanEquit

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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Concept explainers

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.

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Question

Unibank also needs to review its off-balance-sheet risk. Using the following balance sheet value of UniBank in market
value terms (in millions of dollars)
Assets
Cash
Liquid assets
Loans
Total assets
$
3
30
55
88
Liabilities and
equity
Deposits
Interbank loan
Equity
Total liabilities and
equity
In addition, the bank has contingent assets with $50 million market value and
contingent liabilities with $80 million market value.
Why do over-the-counter contracts carry more contingent credit risk than exchange-traded contracts?
$
35
5
48
88

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