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Unformatted text preview: 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 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 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 Deposits 30 S T Securities 10 L T Securities 20 Variable Rate CD's 20 Loans : Fixed Rate Large CD's 33 S T loans 10 F R Loans 50 Borrowing Capital 12 Loan Loss Reserves 5 100 100 2) What is the ROA for the bank? 2% What is the ROE for the bank? 10% What is the Capital / Asset ratio? 17% Is the bank gap positive, neutral or negative?Is the bank gap positive, neutral or negative?...
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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.
- Fall '11
- Financial Markets