Balance Sheet of Big-But-Simple Bank (BBSB)
Assets |
Liabilities and Net Worth |
Loans $300 billion |
Deposits $240 billion |
Equity $60 billion |
The table above shows the balance sheet of Big-But-Simple Bank (BBSB). This bank has taken $60 billion of shareholders' equity and leveraged it:
Answer: ______ to ______.
Balance Sheet of Big-But-Simple Bank (BBSB) Assets Liabilities and Net Worth Loans $300 billion Deposits $240...
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Table: Bank Balance Sheet Bank Balance Sheet Assets Reserves Liabilities& Net Worth S 10,000 Deposits $100,000 100,000 Debt 20,000 0,000Equity 30 Based on the table, owners' equity will fall to zero if loan defaults reduce the value of total assets by__ percent. A. 20 B. 10 О С. 30 D. 40
Question 18 1 pts Table: Bank Balance Sheet Bank Balance Sheet Assets Liabilities & Net Worth Reserves $ 10,000 Deposits $100,000 Loans 100,000 Debt 20,000 Securities 40.000 Equity 30,000 Based on the table, what is the leverage ratio and reserve-deposit ratio at the bank? Would the bank become insolvent (negative capital) with a 10% loss in the value of assets? O 5, 10% and Yes O 3,6.6% and Yes O 5, 10% and No O 3, 10% and No
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C. Consider the following bank balance sheet Freedom Bank Assets Liabilities Reserves $1200 Deposits $9000 Loans $8000 Debt $800 Securities $800 Net Equity 1. What is the net equity of this bank? 2. What is Freedom Bank's leverage ratio? 3. What does the number you got from C2 mean in plain words? What does it mean for the safety of the bank? 4. What is the bank's reserve ratio?
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Question 3 A bank has the following assets and liabilities: Mortgage Loans: $240 million Consumer Loans: $250 million Discount Loans: $25 million Demand Deposits: $400 million NOW Deposits: $100 million Treasuries: $25 million Municipal Bonds: $10 million a) The bank has 10% in required reserves and 8% in excess reserves. Calculate the bank capital and show the balance sheet of the bank. b) Assume that net profits after taxes are $6 million. Calculate ROA, ROE, EM, leverage ratio, and capital...
Northern Bank: Balance Sheet Assets, Liabilities Raserves$800 Deposits $10 000 Loans $11 200 Capital $2000 $12 000 $12 000 TABLE 26-6 Refer to Table 26-6. Owners of Northem Bank contributed money to start the bank. Under which category of it's balance sheet do these funds fair? O A. Deposits O B. Assets O C. Reserves O D. Loans E. Capital Click to select your answer 8