K bob and rachel hamm are unable to meet their

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k. Bob and Rachel Hamm are unable to meet their monthly debt-service payments and are about to lose their home.
3. Construct a balance sheet and estimate the annual take-home income of the Williams' family from the information presented below: Checking Account Balance $2860 Credit Union Deposit $550 Credit Card Obligations 7400 Bank Loan 13800 Department Store Debt 1875 Estimated Market Value of- U. S. Savings Bonds 3460 Home 81000 Unpaid Life Insurance Premiums 625 Autos 23780 Gas and Oil Credit Card Balances 289 Furniture and Appliances 13490 Home Mortgage Mutual Fund Shares 68500 15430 Cash Surrender Value of Life Insurance 3770 Pension Plan Assets 47995 Annual take-home income—0.28 of the family’s total assets Would you grant this family a loan of $ 10,000 to fund the purchase of new kitchen appliances and repairs to the family automobile? Why or Why not?
Chapter 21 - Consumer Lending and Borrowing Web-Based Problems EXCEL 1. Commercial banks are a principal provider of nonmortgage consumer credit. However, not all banks focus their business so exclusively on this type of lending, with some preferring to concentrate more on mortgage lending or business loans. This exercise asks you to select six of the largest U.S. banks and compare then with respect to the emphasis they place on consumer lending. a. Choose three commercial banks that differ by asset size. Go to the Federal Reserve Board’s web site: and click on the Institution Search tab. For each bank enter the name of the commercial bank (for example, Citicorp) and begin the search. (Note: if more than one bank has the same name, be sure to choose the parent company.) Choose the report Consolidated Financial Statement for BHCs (FR Y-9C). Page through this report to Schedule HC.C – Loans and Lease Financing Receivables. For each bank, obtain the data for: (i) “Loans secured by real estate” (which are mortgages and home equity loans); (ii) “Commercial and Industrial loans”; (iii) “Loans to individuals for household, family, and other personal expenditures” (which are consumer loans); and (iv) “Total” (at the bottom of the schedule, which is total loans and leases). Load these data into a spreadsheet for each of the six banks over each of the past five years.

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