Question
An FI funds a $5 million residential mortgage in 2017 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 80
An FI funds a $5 million residential mortgage in 2017 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 80 percent. The demand deposits have a reserve requirement of 10 percent and a deposit insurance premium of 23 basis points.
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
