Please do the last part only : Use the attached file to add each of the aforementioned transactions/changes to the balance sheets of OZ Bank and Deutsche Bank.
Sol (1) Leo has to pay 50 mn AUD at the current forex rate to OZ Bank against Bond payment.
Sol (2) Leo will have to transfer EURO 30 mn to OZ Bank.
Sol (3) EURO is appreciating after Interest rate hike by ECB.
Snapshot of balance sheet is as under:
OZ Bank | |||
Assets | Liabilities | ||
ESF | $150.00 | Deposits | $900.00 |
Loans | $850.00 | Equity | $100.00 |
Dep at Deutsche Bank | $50.00 | Issue Bond | $50.00 |
TOTAL | $1,050.00 | TOTAL | $1,050.00 |
Deutsche Bank | |||
Assets | Liabilities | ||
Reserves | 100.00 € | Deposits | 700.00 € |
Loans | 900.00 € | Leo Deposit | 70.00 € |
Dep at OZ Bank | 30.00 € | ||
Equity | 200.00 € | ||
TOTAL | 1,000.00 € | TOTAL | 1,000.00 € |
What do you think of the so
Please do the last part only : Use the attached file to add each of the...
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OZ Bank is issuing another AUD 50m bonds but this time the buyer happens to be Leo Lederhosen who has got his account at Deutsche Bank in Germany. QUESTION 15 OZ Bank is issuing another AUD 50m bonds but this time the buyer happens to be Leo Lederhosen who has got his account at Deutsche Bank in Germany. Leo has to pay OZ Bank against 0.60 EUR. To finance his bond purchase Leo will therefore transfer an account at Deutsche...
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Please help? Thank you so much! :) " ...He said the banking system could lose deposits in several ways. 'One channel in recent quarters has been domestic fund managers allocating away from cash and deposits to other asset classes – particularly overseas assets,' Mr Jolly said." Source: Banks face cash squeeze as fund managers, households draw deposits (AFR, 15.07.2018) This quote contains some misleading statements. The following questions will help you to get a deeper understanding. These tasks are also...
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