6. Marly Bank currently has $650 million in transaction deposits on its balance sheet. The current reserve requirement is 10 percent, but the Federal Reserve is decreasing this requirement to 9 percent. a. Show the balance sheet of the Federal Reserve and Marly Bank if Marly Bank converts all excess reserves to loans, but borrowers return only 60 percent of these funds to National Bank as transaction deposits. b. Show the balance sheet of the Federal Reserve and Marly Bank if Marly Bank converts 90 percent of its excess reserves to loans and borrowers return 75 percent of these funds to Marly Bank as transaction deposits.

Pixar Bank has the following balance sheet: Assets Cash 21,000 Liabilities and Equity Demand Deposits 550,000 Short-term Securities 369,000 Interbank Borrowed 151,000 Loans Total 400,000 Equity 790,000 Total 89,000 790,000 Pixar Bank's largest customer decides to exercise a $10,000 loan commitment. If the bank chooses to meet this loan commitment using purchased liquidity management techniques, which of the following correctly describes the balance in each account after the transaction? Select one: O a. Loans $410,000 and Funds Borrowed = $161,000 O b. Loans = $400,000 and Funds Borrowed = $161,000 О с. Loans $410,000 and Equity = $99,000 O d. None of the above e. Cash $11,000 and Loans = $410,000

On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.5%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial loan value and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities.   Question: According to the balance sheet as of April 30, 2021, was Key Bank complying with the risk weighted capital requirement set by Basel 1? Group of answer choices The bank's tier 1 capital, but not total capital, meets the minimum requirement. The bank's total capital, but not tier 1 capital, meets the minimum requirement. Neither tier 1 capital nor total capital of the…

Given below is the balance sheet for the Bank of New Providence: Assets ($1,000,000s) Liabilities ($1,000,000s) Cash 52 Deposits 650 T-bills and Bonds 257 Long-term debt 326 Loans to Other Banks 95 Equity 88 Commercial Loans 364 Mortgages 296 Total 1,064 Total 1,064 The net profit for the bank was $10.3 million. A required reserve is specified at 5% of deposits. What is the Bank's EM?

The table shows the balance sheet of a banking system (aggregated over all banks) The desired reserve ratio on all deposits is 5 percent. There is no currency drain Assets Liabilities (millions of dollars) What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Reserves at the Fed Cash in vault 25 Checkable deposits Savings deposits 100 20 100 >>> Answer to 2 decimal places Securities 65 Loans 90 The total quantity of loans after the banks have lent all their excess reserves is SOmilion. The total quantity of deposits after the banks have lent all their excess reserves is Smillion

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c.) Bank A has three types of assets: Debenture ($90,000), Mortgage ($75,000), and Loan to the Government ($2000). The bank has Tier 1 capital of $15,000 and Tier 2 capital of $20,000. Calculate Capital adequacy ratio. If the capital adequacy requirement ratio is 8%, does the bank meet the requirement?

45. Consider the following situation in the Canadian banking system: • The Bank of Canada purchases $5 million worth of government securities   from an investment dealer with a cheque drawn on the Bank of Canada. • The dealer deposits this cheque at Bank XYZ, a commercial bank. • The target reserve ratio for all commercial banks is 20%. • All commercial banks operate with no excess reserves. • There is no cash drain. Suppose the public decides to hold 30% of their deposits in cash — that is, there is now a cash drain of 30%. As a result of the new deposit, the money supply would eventually     decrease by $12.50 million.     increase by $10 million.     decrease by $15 million.     increase by $12.50 million.     not change.

Question: Given below is the balance sheet for the Bank of New Providence: Assets ($1,000,000s) Liabilities ($1,000,000s) Cash 52 Deposits 650 T-bills and Bonds 257 Long-term debt 326 Loans to Other Banks 95 Equity 88 Commercial Loans 364 Mortgages 296 Total 1,064 Total 1,064 The net profit for the bank was $10.3 million. A required reserve is specified at 5% of deposits. What is the bank's ROA?

You observe the following details about a bank (amounts in million)   net interest income: $1,250   net noninterest income: $200   operating expenses: $900   loan loss provisions: $170   gains from trading: $75   Taxes: $150   Total assets: $17,000   Equity: $2,200   What is the bank's ROE? Write your answer expressed as a %, and round to two decimals. For instance, if you think the ROE is 0.0856237, then you write 8.56 below