HW 7 Fall 2010

HW 7 Fall 2010 - Brigham Young University Institute of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Institute of Business Management ManEc 453 Money, Banking and Financial Markets Problem Set #7 Due: October 28, 2009 1) Given the following Bank accounts for the ManEc 453 Bank (in millions) : Fixed Rate large CD's 30 Reserves: 10 Paid-In Capital 15 Variable Rate Loans 10 Variable rate CD's 20 Short Term Securities 10 Fixed Rate Loans 50 Borrowing 0 Long Term Securities 20 Deposits (non-interest paying) 30 Loan loss reserves 5 Annual after tax profits 2 Answer the following questions (assume that the RR ratio is 10%): Treat questions 1) thru 7) as cumulative, each part builds on the answer to the previous part. Organize the above data into a Balance Sheet : ASSETS LIABILITIES Reserves: 10 Deposits (non-interest paying) 30 Loan loss reserves 5 Fixed Rate large CD's 30 Short Term Securities 10 Paid-In Capital 15 Fixed Rate Loans 50 Variable rate CD's 20 Long Term Securities 20 Borrowing 0 Variable Rate Loans 10 95 Annual after tax profits 2 107 2) What is the ROA for the bank? 2/107
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/23/2011 for the course MANEC 453 taught by Professor Jerrynelson during the Fall '10 term at BYU.

Page1 / 2

HW 7 Fall 2010 - Brigham Young University Institute of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online