What is the return on equity for a bank that has an equity multiplier of 14 an

What is the return on equity for a bank that has an

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10.What is the return on equity for a bank that has an equity multiplier of 14, an interest expense ratio of 4%, and a return on assets of .9%?a.1.3%b.4.0%c.9.0%d.12.6%e.8.6%11.What is the equity multiplier for a bank where equity is equal to 12% of total assets?
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Use the following information for the questions 12 – 16Cash and Due from Banks50$ Investments300$ Federal Funds10$ Loans350$ Premises90$ Average Total Assets800$ Demand Deposits100$ Time Deposits300$ Federal Funds300$ Equity100$ Average Total Liabilities & Equity800$ Interest Income100$ Interest Expense75$ Non-Interest Income5$ Non-Interest Expense25$ Net Income5$ Balance SheetIncome Statement1st State BankAssetsLiabilities & Equity12.What is 1stState’s return on equity?13.What is 1stState’s net interest margin?
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14.What is the earnings base at 1stState?a.12.5%b.17.5%c.58.5%d.75.5%e.82.5%15.What is 1stState’s burden?16.What is 1stState’s efficiency ratio?Use the following information for questions 17 – 21
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Cash and Due from Banks75$ Investments400$ Federal Funds18$ Loans402$ Premises105$ Average Total Assets1,000$ Demand Deposits150$ Time Deposits325$ Federal Funds425$ Equity100$ Average Total Liabilities & Equity1,000$ Interest Income150$ Interest Expense110$ Non-Interest Income11$ Non-Interest Expense38$ Net Income13$ Income Statement1st National BankBalance SheetAssetsLiabilities & Equity17.What is 1stState’s return on equity?18.What is 1stState’s net interest margin?a.0.6%b.3.8%c.4.9%d.8.2%e.9.8%19.What is the earnings base at 1stState?
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20.What is 1stState’s burden?21.What is 1stState’s efficiency ratio?22.The goal of a bank manager should be:a.to maximize earnings.b.to minimize taxes.c.to minimize risk.d.to maximize shareholder wealth.e.to maximize net interest income.23.Recoveries refer to:24.The risk that a bank cannot meet payment obligations in a timely and cost-effective manner is known as:25.All of the following are examples of operational risk except:
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26.Which of the following is notpart of the CAMELS ratings?a.Capital adequacy.b.Asset quality.c.Earnings quality.d.Liabilities quality.e.Sensitivity to market risk.
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