Questions from Financial Markets

Q: ABE Banc has the following asset categories: Cash………………………………………$

ABE Banc has the following asset categories: Cash………………………………………$1 million Securities……………………………..$4 million Loans…………………………………………………? Other assets …………………………$2 million Total assets…………………………………………?...

Q: ATM Banc has the following liabilities and equity categories:

ATM Banc has the following liabilities and equity categories: Deposits…………………………………………………$9 million Other liabilities……………………………………….$4 million Stockholders’ equity…………………………………………….? Total liabiliti...

Q: Following are selected balance sheet accounts for the Third State Bank:

Following are selected balance sheet accounts for the Third State Bank: vault cash = $2 million; U.S. government securities = $5 million; demand deposits = $13 million; non transactional accounts = $2...

Q: A bank’s assets consist of: Cash: ………………………………………..$1

A bank’s assets consist of: Cash: ………………………………………..$1.5 million Loans:……………………………………….$10 million Securities…………………………………$4.5 million Fixed assets…………………………………$2 million In addition, the bank’s comm...

Q: Rearrange the following accounts to construct a bank balance sheet for the

Rearrange the following accounts to construct a bank balance sheet for the Second National Bank. What are the total amounts that make the bank’s balance sheet “balance”? Demand deposits:…………………………………...

Q: Use the data from Problem 7 for Second National Bank and calculate

Use the data from Problem 7 for Second National Bank and calculate the common equity capital ratio assuming that stockholders’ equity was equal to common equity (i.e., there was no preferred stock)....

Q: Tenth National Bank has common stock of $2 million, retained

Tenth National Bank has common stock of $2 million, retained earnings of $5 million, loan loss reserves of $3 million, and subordinated notes outstanding in the amount of $4 million. Total bank assets...

Q: 1. A surplus economic unit is one that a.

1. A surplus economic unit is one that a. spends more money than it brings in. b. generates more money than it spends. c. produces an amount money equal to what it spends. d. borrows money from bu...

Q: 1. The U.S. fractional reserve system requires that

1. The U.S. fractional reserve system requires that at each depository institution funds be held in reserve equal to a certain percentage of which one of the following? a. Deposit liabilities b. Sto...

Q: A new bank has vault cash of $1 million and $

A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. a. If the required reserves ratio is 8 percent, what dollar amount of deposits can the ba...