2011 HW 8 Fall

2011 HW 8 Fall - Seongjae Lee Brigham Young University...

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Seongjae Lee Brigham Young University Department of Finance ManEc 453 Money, Banking and Financial Markets Problem Set #8 Due: November 7, 2011 1) Given the following Bank accounts for the ManEc 453 Bank (in millions) : Fixed Rate large CD's 33 Reserves: 10 Paid-In Capital 12 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 5) as cumulative, each part builds on the answer to the previous part. Organize the above data into a Balance Sheet : ASSETS LIABILITIES Reserves: 10 Fixed Rate large CD's 33 Variable Rate Loans 10 Variable rate CD's 20 Short Term Securities 10 Deposits (non-interest paying) 30 Fixed Rate Loans 50 Loan loss reserves 5 Long Term Securities 20 Paid-In Capital 12 Total assets 100 Total liabilities 100 2) What is the ROA for the bank? 0.02
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This note was uploaded on 12/29/2011 for the course BUS 453 taught by Professor Jerrynelson during the Fall '11 term at BYU.

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