1. Which components of operating expenses experience the greatest fluctuations? Why?
2. Why do equity holders care more about ROE than about ROA?
3. If a bank is falling short of meeting its capital requirements by $1 million, what three things can it do to rectify the situation?
4. Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 9%, and reserves are currently $27 million. Determine the amount of deposits, the reserve shortage created by a deposit outflow of $5 million, and the cost of the reserve shortage if Angus Bank borrows in the federal funds market (assume the federal funds rate is 0.25%).
5. Nice Horizon Bank has the following measures of bank profitability: EM = 14 and ROA = 1.05%. Gold Coast Banks measures are EM = 12.3 and ROA = 1.15%.Which bank has a higher ROE?
6. Refer to the previous problem. Calculate both banks net profit after taxes and equity capital if both banks assets are equal to $120 million.
7. A bank is considering two investment portfolios com- posed of a mix of government securities (federal and municipal securities). The first portfolio has a return of 6% with probability 0.9 and returns of 5% and 7% with 0.05 probability. The second portfolio has a return of 5% with probability 0.5 and a return of 7% with probability 0.5. Which portfolio has the best combination of return and risk?
We are a professional custom writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework.
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill our Order Form. Filling the order form correctly will assist our team in referencing, specifications and future communication.
1. Click on the “Place order tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
2. Fill in your paper’s requirements in the "PAPER INFORMATION" section and click “PRICE CALCULATION” at the bottom to calculate your order price.
3. Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
Need this assignment or any other paper?
Click here and claim 25% off
Discount code SAVE25