Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Oidhat Financial starts its first day of operations with $9 million in capital. A total of $140 million in checkable deposits are received. The bank makes a $30 milion commercial loan and another $50
milion in mortgages, with the following terms: 200 standard 30-year, foxed-rate mortgages with a nominal annual rate of 5.25%, each for $250,000. Assume that required reserves are 8%
Complete the bank's balance sheet provided below. (Round your responses to the nearest whole number)
Assets
The leverage ratio is%, and the bank is
Required reserves
Excess reserves
Loans
$11 million
$ 58 million
$ 80 million
Liabilities
Checkable deposits
Bank capital
1
(Round your response to two decimal places)
$140 million
$9 million
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Transcribed Image Text:K Oidhat Financial starts its first day of operations with $9 million in capital. A total of $140 million in checkable deposits are received. The bank makes a $30 milion commercial loan and another $50 milion in mortgages, with the following terms: 200 standard 30-year, foxed-rate mortgages with a nominal annual rate of 5.25%, each for $250,000. Assume that required reserves are 8% Complete the bank's balance sheet provided below. (Round your responses to the nearest whole number) Assets The leverage ratio is%, and the bank is Required reserves Excess reserves Loans $11 million $ 58 million $ 80 million Liabilities Checkable deposits Bank capital 1 (Round your response to two decimal places) $140 million $9 million
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