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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 PaidIn 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 (noninterest 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
 JerryNelson
 Financial Markets

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