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Assume a bank has $2,000,000 in assets and $400,000 in equity. If its profits are $20,000, what is the banks ROA? ___ Using the information

  1. Assume a bank has $2,000,000 in assets and $400,000 in equity. If its profits are $20,000, what is the banks ROA? ___

  1. Using the information in #1, what is the banks ROE? ____

  1. Assume a bank has total assets of $200, saving deposits of $50, and net worth of $20. If the banks other liability is checking deposits, the value of checking deposits is ______-

  1. If a bank has return on equity of 5%, assets of $50 million, equity of $10 million, its profits are __________.

  1. If a bank has $120 million in rate sensitive assets, $100 million in rate sensitive liabilities, and interest rates increase by 2%, profits change by ___________

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