Questions from Financial Markets


Q: The All Star Bank has the following balance sheet:

The All Star Bank has the following balance sheet: Its largest customer decides to exercise a $15 million loan commitment. Show how the new balance sheet changes if All Star uses (a) stored liquidi...

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Q: Central Bank has the following balance sheet (in millions of dollars

Central Bank has the following balance sheet (in millions of dollars): Cash inflows over the next 30 days from the FI’s performing assets are $7.5 million. Calculate the LCR for Ce...

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Q: Walls Farther Bank has the following balance sheet (in millions of

Walls Farther Bank has the following balance sheet (in millions of dollars): Cash inflows over the next 30 days from the FI’s performing assets are $5.5 million. Calcul...

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Q: First Bank has the following balance sheet (in millions of dollars

First Bank has the following balance sheet (in millions of dollars): Calculate the NSFR for FirstBank.

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Q: Banc Two has the following balance sheet (in millions of dollars

Banc Two has the following balance sheet (in millions of dollars): Calculate the NSFR for BancTwo.

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Q: Consider the balance sheet for the DI listed below:

Consider the balance sheet for the DI listed below: The DI is expecting a $15 million net deposit drain. Show the DI’s balance sheet under these two conditions: a. The...

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Q: A DI has assets of $10 million consisting of $1

A DI has assets of $10 million consisting of $1 million in cash and $9 million in loans. It has core deposits of $6 million. It also has $2 million in subordinated debt and $2 million in equity. Incre...

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Q: An FI holds a 15-year, $10,000

An FI holds a 15-year, $10,000,000 par value bond that is priced at 104 and yields 7 percent. The FI plans to sell the bond but for tax purposes must wait two months. The bond has a duration of 9.4 ye...

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Q: A DI has $10 million in T-bills, a

A DI has $10 million in T-bills, a $5 million line of credit to borrow in the repo market, and $5 million in excess cash reserves (above reserve requirements) with the Fed. The DI currently has borrow...

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Q: An investment fund has the following assets in its portfolio: $

An investment fund has the following assets in its portfolio: $40 million in fixed-income securities and $40 million in stocks at current market values. In the event of a liquidity crisis, it can sell...

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