Suppose that Second Bank of Maine holds securities for $100 and its loans portfolio is valued...
Suppose that Second Bank of Maine holds securities for $100 and its loans portfolio is valued at $200. Off-balance-sheet activities generated income for $20 this year. If this bank earns 5 percent on its securities and 10 percent on its loans, its interest income for this year is:
Also what is its non-interest income for this year?
Homework Answers
Interest income for this year = ($100 * 0.05) + ($200 * 0.10) = 5 + 20 = $25
Its non-interest income for this year = $20
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Suppose that Second Bank of Maine holds securities for $100 and
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