Assets: $200 Reserves; $5000 Short term Bonds; $6000 Long Term Loans
Liabilities: $7000 Checkable Deposits; $3000 Fixed Rate Borrowings; $1200 Capital
What is the Gap for this bank and what does it measure? What (be specific) could the bank do to create a gap of zero?
Interest rate gap =Interest Bearing assets - interest-bearing liabilities.
Assets: $200 Reserves; $5000 Short term Bonds; $6000 Long Term Loans Liabilities: $7000 Checkable Deposits; $3000 Fixed...
Assets: $200 Reserves; $5000 Short term Bonds; $6000 Long Term Loans Liabilities: $7000 Checkable Deposits; $3000 Fixed Rate Borrowings; $1200 Capital If market interest rates fall by 2%, how will bank profits change?
Rate-Sensitive Bank Assets Liabilities $5 Variable-rate Loans Short-term Loans Short-term Securities Reserves Variable-rate CDs Money Market Deposit Accounts Checkable Deposits Savings Deposits Long-term CDs Equity Capital Long-term Loans Long-term Securities 30 30 Referring to the table above, and using basic gap analysis, this bank's "gap" is $ million. (Round your response to the nearest whole number.) Referring to the table above, if interest rates suddenly increase by two percentage points, then the bank's profits change by $ whole number.) (Round...
A bank has the following assets: $80 in Reserves, 5350 in Bonds, $550 in Loans. It has the following Liabilities: $600 in Checkable Deposits, $200 Borrowings The bank experiences an outflow of deposits of $50. The bank takes a loan from the Fed to meet the reserve requirement of 10%. If the bank take the minimum amount necessary, what is the new level of borrowings?
Assets Liabilities + Net Worth Reserves $120,000 Checkable Deposits $300,000 Loans 140,000 Stock Shares 200,000 Securities 40,000 Property 200,000 The accompanying balance sheet is for the First Federal Bank. Assume the required reserve ratio is 20 percent. If the original bank balance sheet was for the whole commercial banking system rather than a single bank, loans and deposits could have been expanded by a maximum of: $40,000. $100,000. $200,000. $300,000.
Bank A Assets Liabilities & Net Worth Reserves $20 Deposits $120 Bonds $10 Borrowing $40 Loans $230 Net Worth $100 Bank B Assets Liabilities & Net Worth Reserves $10 Deposits $150 Bonds $30 Borrowing $20 Loans $260 Net Worth $130 Suppose that there are only two banks in the United States (so that all the banking rules and regulations pertain to the U.S.). The tables above show the balance sheets of these two banks at a point in time. The...
Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $ 8 million Checkable Deposits $100 million Excess Reserves $ 3 million Bank Capital $ 6 million T-bills $45 million Commercial Loans $50 million Calculate the bank’s risk-weighted assets.
1. Bank’s Balance Sheets (The answers in relative lecture videos) a) Loans are listed as assets or liabilities of a bank? b) What are loans key characteristics? List different types of loans? c) Please rank from high to low the liquidity of reserves, securities and loans for a bank. 2. Liquidity Risk Your bank has the following balance sheet: Assets Liabilities (unit in million) Reserves $50 Checkable deposits $200 Securities 50 Loans 150 Bank capital 50 a)...
te Assets Liabilities Deposits 1000 Loans Bonds Reserves 700 100 200 Your banking system, shown above, has no excess reserves. What is the value of the deposit expansion multiplier? Select one: O a. 7 O b. 10 o O c.5 o d. 4
The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Using balance sheet A, how would this look. How much excess reserves currently exist for the bank? Households deposit $5000 in currency into the bank that is added to reserves. (Show this addition on the balance sheet A. What level of excess reserves does the bank now have? Assuming the excess reserves become loans, what would this look like on the...
Your bank has the following balance sheet: Assets Liabilities (unit in million) Reserves $50 Checkable deposits $200 Securities 50 Loans 150 Bank capital 50 b) If there is an unexpected deposit outflow of $50 million, what is the immediate effect on the balance sheet (fill in numbers in the blank)? Is there liquidity risk? Assets Liabilities Reserves $_____ Checkable deposits $________ Securities _____ Loans _____ Bank capital ____