Chapter 17 1. If a bank is falling short of meeting its capital requirements by $1 million, what three things can it do to rectify the situation? 2. X-Bank reported an ROE of 14.00% and an ROA of 1.00%. How well capitalized is this bank? 12 Page 2 of 8 HW 1 FIN 353 3. Below is the balance sheet for Tribank. The required reserve ratio is 12.00% Deposits fall by $4. What does the new balance sheet look like? How much money does the bank need to meet required reserves if any? Table 2 Assets Liabilities Required Reserves $12.00 Checkable Deposits Excess Reserves $3 Bank Capital T-bills $45 Loans $50 $100 $10 4. To meet any shortfall in the previous question, TriBank will borrow the cash in the fed funds market. What does the balance sheet look like after this transaction? C