Question
Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $33 million 2. Customer loan repayments of $2016
Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $33 million 2. Customer loan repayments of $2016 million 3. sales of assets S36 million 4. operating expenses of $51 million 5. new loan request accepted of $588 million 6. deposits of $1340 million 7. borrowings from the money market of S43 8. nondeposit service fees of $54 million 9. borrowings to be repaid of S46 million 10. divided payment of $280 million II. extraordinary income of $100. What is Bank of America's projected net liquidity position for the coming month? Using the information given below caleulate the ROA for each of the banks. Amounts in thouusand's Bank /ROE/Total Equity /Total Asset 1. Barclays bank: 4.31% /90.899 /443.291 2. Midland bank: 10.67% /41.585 /381.505 3. National bank:22.79%/51,799 /386.696 4. J.P Morgan :7.45%/1,123.318 /8.441.249 5. Qutar bank :16.05%/ 214.197 /2.300.388 1. discuss the difference between bank goals and bank objectives in the planning process. What is the ultimate objective of bank? 2.explain the meaning of standard & poors AAA and AA credit ratings? 3. explain the difference between line of credit and revolving loan? 4. why is government interested in supporting bank liquidity in the face of financial panic? Should very large banks be prevented from failing by the govermment? 5. how does the deposit compositions of small and large banks differ
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