AssetsLiabilitiesReserves250 DepositsTransactionRequired1000(checking) deposits-ExcessSavings deposits 3000Money MarketLoans500depositsVariable rate750 Time deposits (CDs)loansShort-term1600 Fixed rate500loansLong-term fixed2000 Variable rate100rate loansSecuritiesBorrowingShort-termFed funds500securitiesborrowedLong-term600securitiesRefer to the bank balance sheet above. Calculate the value of rate-sensitiveliabilities. Answer in millions of dollars and do not enter a $ sign. AssetsLiabilitiesReserves250 DepositsTransactionRequired1000(checking) depositsExcessSavings deposits 3000Money MarketdepositsLoans500Variable rate750 Time deposits (CDs)loansShort-term1600Fixed rate500loansLong-term fixed2000Variable rate100rate loansSecuritiesBorrowingShort-termFed funds500securitiesborrowedLong-term600securitiesRefer to the bank balance sheet above. Suppose interest rates increase by onepercentage point. How much does profit change? Answer in millions of dollars anddo not enter a $ sign.

(a) New Leverage Ratio:- Formula = Total Debts / Total Assets =$6100/$5450 = 1.12 times…

Answered: Assets Liabilities ves 250 Deposits…

Assets Liabilities ves 250 Deposits Transaction uired 100 (checking) deposits ss Savings deposits 30C Money Market deposits 500 iable rate

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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Question

Assets
Liabilities
Reserves
250 Deposits
Transaction
Required
1000
(checking) deposits
-
Excess
Savings deposits 3000
Money Market
Loans
500
deposits
Variable rate
750 Time deposits (CDs)
loans
Short-term
1600 Fixed rate
500
loans
Long-term fixed
2000 Variable rate
100
rate loans
Securities
Borrowing
Short-term
Fed funds
500
securities
borrowed
Long-term
600
securities
Refer to the bank balance sheet above. Calculate the value of rate-sensitive
liabilities. Answer in millions of dollars and do not enter a $ sign.

Assets
Liabilities
Reserves
250 Deposits
Transaction
Required
1000
(checking) deposits
Excess
Savings deposits 3000
Money Market
deposits
Loans
500
Variable rate
750 Time deposits (CDs)
loans
Short-term
1600
Fixed rate
500
loans
Long-term fixed
2000
Variable rate
100
rate loans
Securities
Borrowing
Short-term
Fed funds
500
securities
borrowed
Long-term
600
securities
Refer to the bank balance sheet above. Suppose interest rates increase by one
percentage point. How much does profit change? Answer in millions of dollars and
do not enter a $ sign.

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