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7. 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.

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7. 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 then were the bank's after-tax profits? Bank Balance Sheet (in thousands) $100 Deposits $500 Borrowing $500 Bank Capital Assets Liabilities Reserves Loans Securities $1,000 $0 $100

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