Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 15, Problem 3DQ
To determine
Commercial bank's assets, liabilities and balance sheet.
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The table below reports the breakdown of assets and liabilities for all commercial banks for January 2020, two months before the start of the COVID-19 recession, and December 2020.
Assets (in billions of dollars)
Liabilities (in billions of dollars)
Jan-20
Dec-20
Jan-20
Dec-20
Loans
$10,041.54
$10,376.47
Deposits
$13,293.30
$16,061.82
Reserves
$1,768.52
$3,168.94
Borrowings
$1,965.90
$1,715.81
Treasury Securities
$3,008.19
$3,726.10
Other Liabilities
$593.42
$825.74
Other Assets
$2,984.52
$3,224.45
Total Assets
$17,802.77
$20,495.96
Total Liabilties
$17,802.77
$20,495.96
From January to December, the net worth of banks changed by $___ billion (round your answer to two decimal places).
Bank A has $5,000 in reserves, all required to be held. The required reserve ratio is 10 percent. Bank A has checkable deposits of O $500. O $5,000. O $50,000. O $500,000.
Suppose that a bank holds
$15m in treasury bonds
$10m in reserves
$30m of checkable deposits
$20m of time deposits
$6m of capital
How much loan does the bank have if we know it doesn't have any other assets or liabilities
Suppose that checkable deposits and reserves pay 0 interest
The interest rate on treasuries is 3%
The loan pays 7%
Time deposits pay 5%
How much profit does the bank make?
What is the bank's return on assets?
3.2%
2.9%
3.7%
2.6%
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