2) On the 2nd day, Mean Green Bank decides to invest $40 million in 30-dayT-bills. Complete bank's new balance sheet below.AssetsLiabilitiesRequired ReservesCheckable DeposmillionExcess ReservesBank CapitalmillionLoansmillionT-Billsmillion%24 2. Mean Green Bank started its first day of operations with $10 million incapital. $100 million in checkable deposits is received. The bank issues a $30million commercial loan and another $30 million in mortgages. The requiredreserves are 8%.

Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

2) On the 2nd day, Mean Green Bank decides to invest $40 million in 30-day T-bills. Complete bank's new balance sheet below. Assets Liabilities Required Reserves Checkable Depos million Excess Reserves Bank Capital million Loans million T-Bills million

2) On the 2nd day, Mean Green Bank decides to invest $40 million in 30-day T-bills. Complete bank's new balance sheet below. Assets Liabilities Required Reserves Checkable Depos million Excess Reserves Bank Capital million Loans million T-Bills million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following balance sheet for Whiz Financial Services Limited: Assets K Liabilities K Cash 6.25 Equity 25.00 Short term consumer loans (1 yr maturity) 62.50 Demand deposits 50.00 Long term consumer loans (2 yr maturity) 31.25 31.25 Client Savings accounts 37.50 3 month T-Bills 37.50 3 month CDs 50.00 6 month T-Bills 43.75 3 months Bankers Acceptances 25.00 3 year T-Bonds 75.00 6 month commercial paper 75.00 10 year, fixed rate mortgages 25.00 1 year time deposits 25.00 30- year floating rate mortgages 50.00 2-year time deposits 50.00 premises 6.25 - Total 337.50 337.50 Required:A. Calculate the value of the rate sensitive assets, rate sensitive liabilities and therepricing gap over the next year. B. Calculate the expected change in the net interest income for the bank if interestrates rise by 1 percent on both rate sensitive…
2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.
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