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5) Suppose Bearcat Bank has $1.4 in reserves, $8.9M in securities, $28.2M in loans, $19.5M in checkable deposits and $4M in borrowings. If this bank

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5) Suppose Bearcat Bank has $1.4 in reserves, $8.9M in securities, $28.2M in loans, $19.5M in checkable deposits and $4M in borrowings. If this bank were to borrow $2.5M from another the Federal Reserve to hold as reserves, construct this bank's new balance sheet. (5 points) 6) Suppose McKendree Bank has $9.2 in reserves, $19.8M in securities, $54.2M in loans, $60.5M in checkable deposits and $9M in borrowings. a) What is this bank's equity multiplier? (2 points) b) If this bank has net income of $2M, then what is this bank's ROA and ROE? (4 points)

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