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Bank A has $195 in loans and $5 in cash as assets, with $190 in demand deposits as its sole form of debt. The loans

Bank A has $195 in loans and $5 in cash as assets, with $190 in demand deposits as its sole form of debt. The loans have an interest rate of 5 percent while the bank pays a 3 percent interest rate on the demand deposits.

 

Calculate any relevant measures of the bank's profitability.

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