How to set up the banks balance sheet

Assignment Help Econometrics
Reference no: EM13242425

Consider a bank that has assets of 100, capital of 20, and short-term credit of 80. Among the bank's assets are securitized assets whose value depends on the price of houses. These assets have a value of 50. Set up the bank's balance sheet.

Reference no: EM13242425

Questions Cloud

Nomadic peoples of asia were so successful : Why do you think the nomadic peoples of Asia were so successful and influential during 1000 to 1500 period? What was different from earlier centuries? What were the limits of their success?
Why might a profitable motel shut down in the long run : Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development What kinds of costs are involved in making a decision to shut down
Ethical teachings and philosophical views of buddhism : Compare and contrast the ethical teachings and philosophical views of Buddhism, Confucianism, and Christianity. What prinicples did these systems share, and what made them unique?
What is the mass of the object : An object is being pushed up an inclined plane with a constant force F = 100. N. The plane makes an angle of 30.0° with respect to the horizontal, What is the mass of the object
How to set up the banks balance sheet : Consider a bank that has assets of 100, capital of 20, and short-term credit of 80. Among the bank's assets are securitized assets whose value depends on the price of houses. These assets have a value of 50. Set up the bank's balance sheet.
What criteria did plutarch and author : What criteria did plutarch and author of 1 Maccabees use to evaluate the achievement of Alexander the Great?
At what level must the government set the subsidy : The costs of providing this consumer with insurance are CI(θ)= α + 2βθ where -0.5
Political problems and conditions in latin america : What are the economic / political problems and conditions in Latin America and why after almost 200 years of independence Latin America still is poor and underdeveloped?
What will be the price in equilibrium as a function of a : Assume there is one insurance plan. Consumers decide whether to enroll in this insurance plan or remain uninsured. Consumers are heterogeneous in how much they value insurance and how costly they are to insure.

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate the total consumers surplus

Calculate the market demand. Assume that the market price for the good is $4 due to perfectly elastic industry supply. Using the market demand function, calculate the total consumers surplus. Calculate the total consumers surplus using individual ..

  What are the output and market share for each company

Assume the current prices in the market are challenged by the regulatory agency, resulting in a new maximum price of $2,000. How will this change the industry output and market share for each company

  What is the maximum increase in checking account deposits

Suppose you deposit $4,000 in currency into your checking account at Bank of America. Assume that Bank of America has no excess reserves at the time you make your deposit and that the required reserve ratio is 10 percent.

  Determine what is value of the multiplier

Consider the following model of a closed economy (Smallville): MPC = 0.8 - 0.01Y (marginal propensity to consume) C = MPC x YD (consumption function) YD = (Y - T) (disposable income)

  How many cookies will the cookie monster buy

On graph paper, plot the Cookie Monster's total utility and marginal utility. Due to the difference in the order of magnitude, make them two separate graphs. In each case, put cookies on the horizontal axis and utility on the vertical.

  Explain whaty is coefficient of variation for both projects

To evaluate the two projects, you decide to use the company's weighted average cost of capital (WACC) for the less risky project (12 percent) and the WACC plus two points (14 percent) for the more risky project.

  How does the change alter the market rate of substitution

A consumer must divide $250 between the consumption of product X and product Y. The relevant market prices are Px $5 and Py $10. Show how the consumer's opportunity set changes when the price of good X increases to $10.

  Compute the project expected npv and standard deviation

Huang Industries is planning a proposed project whose estimated NPV is twelve million dollar. This estimate suppose that economic situations will be average.

  What will your accounting profit or loss be

Suppose the government imposes a 25-percent tax on accounting profits. This tax is only levied if a firm is earning positive accounting profits. What will your after-tax accounting profit be in the low-revenue case In the high-revenue case.

  What is the expected wage in the city

Each member of the family has the opportunity to migrate to the nearest city where there are two different types of jobs. Informal jobs are available to everybody and pay $200. Formal sector jobs are more difficult to get and p..

  Do change in fixed costs does affect firms level of ouyput

Suppose that a firm sells in a highly competitive market, in which the going prince is $15 per unit. its cost equation is c=$25+.25Q^2 find the profit-maximizing level of out put for the firm. determine its level of profit.

  Determine what makes the first payment on the loan

if you borrow $5000 and agree to repay the loan in five equal annual payments at an interest rate of 11%. what will be the annual payment be what if you make the first payment on the loan at the end of second year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd