Question
**Although it can found easily.However I want non plagiarised answer. The balance sheet for Gotbucks Bank, Inc. (GBI), is presented below ($ millions): Assets Liabilities
**Although it can found easily.However I want non plagiarised answer.
The balance sheet for Gotbucks Bank, Inc. (GBI), is presented below ($ millions):
Assets | Liabilities and Equity | ||
Cash | $30 | Core deposits | $20 |
Federal funds | 20 | Federal funds | 50 |
50 Loans (floating) | 105 | Euro CDs | 130 |
Loans (fixed) | 65 | Equity | 20 |
Total assets | $220 | Total liabilities & equity | $220 |
Notes to the balance sheet: The fed funds rate is 8.5 percent, the floating loan rate is LIBOR + 4 percent, and currently LIBOR is 11 percent. Fixed rate loans have five-year maturities, are priced at par, and pay 12 percent annual interest. The principal is repaid at maturity. Core deposits are fixed rate for two years at 8 percent paid annually. The principal is repaid at maturity. Euros currently yield 9 percent.
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