The Economics of Money, Banking and Financial Markets (11th Edition) (The Pearson Series in Economics)
11th Edition
ISBN: 9780133836790
Author: Frederic S. Mishkin
Publisher: PEARSON
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Question
Chapter 9, Problem 23AP
To determine
The rate of capitalization in a bank which hasreported 15% ROE and 1% ROA
Introduction:
➢ ROE or the return on equity refers to a ratio used to check the profitability of a bank. An investor uses this measure to analyze bank’s profits. It helps to check the amount of equity which the shareholders gain.
➢ ROA or the return on assets refers to the total amount of income produced by the banks in a given period of time.
➢ EM or equity multiplier is a measure used to calculate the amount of assets with the bank per unit or per dollar of the equity capital.
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Chapter 9 Solutions
The Economics of Money, Banking and Financial Markets (11th Edition) (The Pearson Series in Economics)
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Why do equity holders care more about ROE than...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19APCh. 9 - Prob. 20APCh. 9 - Prob. 21APCh. 9 - Prob. 22APCh. 9 - Prob. 23APCh. 9 - Prob. 24APCh. 9 - Prob. 25APCh. 9 - Prob. 1DAPCh. 9 - Prob. 2DAPCh. 9 - Prob. 1WECh. 9 - Prob. 2WE
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