Cambria Bank is holding $9 million in reserves, $12 million in government bonds and $10 million in low risk mortgage loans. Out of the $30 million in customers' deposits, Cambria holds $15 million in the form of certificates of deposit. Determine the bank's net worth. Identify the criteria for classifying a bank as healthy or unhealthy and determine which applies to Cambria Bank in these circumstances.

Cambria Bank is holding $9 million in reserves, $12 million in government bonds and $10 million in low risk mortgage loans. Out of the $30 million in customers' deposits, Cambria holds $15 million in the form of certificates of deposit. Determine the bank's net worth. Identify the criteria for classifying a bank as healthy or unhealthy and determine which applies to Cambria Bank in these circumstances.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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