User Account

All Pages

What does the bank balance sheet look like

Assignment Help Operation Management
Reference no: EM131899215

Assignment : Money and Banking

1. Rank the following bank assets from most to least liquid:
a. Commercial loans
b. Securities
c. Reserves
d. Physical capital

2. NewBank started its first day of operations with $155 million in capital. A total of $92 million in checkable deposits is received. The bank makes a $28 million commercial loan and lends another $23 million in mortgage loans. If required reserves are 5.4%, what does the bank balance sheet look like?

3. The bank you own has the following balance sheet:
Assets                 Liabilities
Reserves              $75 million
Deposits              $500 million
Loans                  $525 million
Bank capital          $100 million

If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions should you take?

4. Suppose you are the manager of a bank that has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5 percentage points. What actions could you take to reduce the bank's interest-rate risk?

Reference no: EM131899215

Questions Cloud

What are the opportunities and challenges for louis vuitton : What are the opportunities and challenges for Louis Vuitton in Japan? Explain what these opportunities are and why they present opportunities.
Tetrahedral and octahedral interstices in the fcc : Determine the radius of a guest atom (r) which can just fit into both the tetrahedral and octahedral interstices in the FCC structure
Describe how financial ratio analysis : Describe how financial ratio analysis should be conducted. Please provide references where necessary.
What is the ph of a 500 ml solution : What is the pH of a 500 mL solution that is 0.128 M HA after you add 0.300 moles of NaA (the salt form of the conjugate)? pKa = 5.01 Show work
What does the bank balance sheet look like : If required reserves are 5.4%, what does the bank balance sheet look like?What actions could you take to reduce the bank's interest-rate risk?
Draw time line to show the cash flows of the project : Draw a time line to show the cash flows of the project. Compute the project’s payback period, net present value (NPV), profitability index (PI),
Calculate the molar extinction coefficient of the solute : Please calculate the molar extinction coefficient of the solute. Show calculation.
How is Queen Latifah SNL clip an example of a counterstory : How is Queen Latifah's SNL clip an example of a counterstory? What microaggression examples does she discuss? Why are they microaggressions
What should be the value of the put : if the effective annual risk-free rate of interest is 6% and there are three months until expiration, what should be the value of the put?

Reviews

Write a Review

Operation Management Questions & Answers

  Discuss concept of whether discretionary employee benefits

Discuss the concept of whether discretionary employee benefits should be an entitlement or something earned based on job performance.

  Leading a multicultural team through a change process

Leading a Multicultural Team through a Change Process, Assume you have recently been assigned to lead a six-person team working on a new health care product that could revolutionize the treatment of diabetes.

  Pestle techniques to formulate strategies

Several companies use SWOT, 7s and PESTLE techniques to formulate strategies.

  From start to finish explain the revenue cycle starting

From start to finish explain the revenue cycle starting with the customer placing an order through the customer receiving the goods. Be sure to detail when and how each department interacts with one other - ID the departments and when they need to be..

  Alternative way of explaining this regularity

challenge it by pointingout that there is an alternative way of explaining this regularity

  Safety stock determined in the classical eoq model

How are quantity discounts evaluated when using the classical EOQ model? How is safety stock determined in the classical EOQ model ? What factors might a court consider in examining whether a defendent has "sufficient minimum contact" with the forum ..

  Understanding their accounting information systems

Describe how data flowcharts assist a business in understanding their accounting information systems and the development of those systems?

  At lies are present in the tangled webs considered here

What lies are present in the "tangled webs" considered here? How were they used? How were they justified by those who they executed them? Who was harmed by them? Which lies were most harmful?

  Firms hypernorms as guide for ethical behavior

Which of the following is example of firms hypernorms as guide for ethical behavior? A Major strategic reason for establishing a wholly owned foreign venture is

  Impact on hipaa on health care organizational policies

Discuss the impact on HIPAA on health care organizational policies. Analyze the relationship between HIPAA polic and policy in health care. Differentiate legislative versus institutional policies in health care. Analyze the influence of politics on h..

  Elements necessary to establish negligence cause of action

Identify the legal concept of negligence and discuss the elements necessary to establish a negligence cause of action. The elements are the duty, breach of duty, causation, proximate cause, and damages. Be sure to pay particular attention to the issu..

  What type of organizational power does melanie exert

Melanie is a Starbucks manager who is highly admired by her employees. what type of organizational power does Melanie exert?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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