Question
Consider a bank with the following balance sheet.You read online that the bank's return on assets (ROA) was 1 percent. What were the bank's after-tax
Consider a bank with the following balance sheet.You read online that the bank's return on assets (ROA) was 1 percent. What were the bank's after-tax profits?
BANK BALANCE SHEET (IN THOUSANDS)
ASSETS
- Reserves $100
- Loans $500
- Securities $500
LIABILITIES
- Deposits $1,000
- Borrowing $0
- Bank Capital $100
The bank's after-tax profits: $ ?
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Land Economics Research
Authors: Joseph Ackerman, Marion Clawson, Marshall Harris
1st Edition
1317340426, 9781317340423
