ABE Banc has the following asset categories: Cash .... $1 million Securities .. $4 million Loans ....

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ABE Banc has the following asset categories:

Cash .... $1 million

Securities .. $4 million

Loans .... ?

Other assets . $2 million

Total assets ... ?

a. What would be the bank’s total assets if loans were twice the size of the amount of securities?

b. If total assets were $12 million, what would be the amount of the loans?

c. If total assets were $11 million, and $1 million of securities were sold with the proceeds placed in the cash account, what would be the amount of the loans?

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Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Question Posted: Mar 27, 2015 12:00 PM

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ABE Banc has the following asset categories: Cash .... $1 million Securities .. $4 million Loans ....

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a If loans were 8 million 4 million x 2 total assets would be 15 mi...View the full answer

Introduction to Finance Markets Investments and Financial Management

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