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5. Consider a bank with the following balance sheet. You read in the local newspaper that the bank's return on assets (ROA) was 1 percent.
5.Consider a bank with the following balance sheet. You read in the local newspaper that the bank's return on assets (ROA) was 1 percent. What were the bank's after-tax profits?
Bank Balance Sheet
(in thousands)
Assets
Liabilities
Reserves
$100
Deposits
$1,000
Loans
$500
Borrowing
$0
Securities
$500
Bank Capital
$100
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