It will be repeated in future questions to make things a bit easier. Note that y
ID: 2738618 • Letter: I
Question
It will be repeated in future questions to make things a bit easier. Note that you can, and may have to, calculate anything marked with a "???," and anything not included or otherwise calculable = $0.
Additional information
No loans are currently charged off, but 20% of residential mortgage (home) loans are nonperforming.
Use the reserve requirement ratio we've used in all graded assignments. (10%)
Interest income = $240
Income from non-interest sources (letters of credit, fees) = $20
Interest expense = $50
Non-interest expense (wages and salaries) = $80
All borrowings, and half of the loans to business firms, will be repriced in the next month.
Economists expect interest rates to rise in the near future.
Calculate reserves on hand (actual reserves) for this bank. Carefully follow all numeric instructions.
Assets Liabilities and Owner's Equity Buildings and furniture $900Cash $80
Commercial paper $500
Deposit in the Fed $320
Government agency bonds $800
Home mortgages $1200
Loan to Bank A $400
Loans to firms $1100
Loans to households $1300
Municipal bonds $1400
US government bonds $600 Checking deposits $2100
Savings deposits $800
Time deposits $200
Borrowing from Bank B $500
Borrowing from the Fed $1600
Other liabilities $1000
Equity $???
Total assets = $8600 Total liabilities and owner's equity = ???
Explanation / Answer
Assets= liability+owner equity
8600=(2100+800+200+500+1600+1000)+equity
equity=8600-6200=$2400
Total liability and owner equity=$8600
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