Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FINN 333 First Semester -2020-2021 Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $66 million 2.

FINN 333
First Semester -2020-2021
Bank of America faces the following inflows and outflows during the coming month:
1. deposit withdrawals of $66 million
2. Customer loan repayments of $2016 million
3. sales of assets $36 million
4. operating expenses of $102 million
5. new loan request accepted of $588 million
6. deposits of $1340 million
7. borrowings from the money market of $86 million
8. nondeposit service fees of $54 million
9. borrowings to be repaid of $46 million
10. divided payment of $280 million
11. extraordinary income of $100.
What is Bank of Americas projected net liquidity position for the coming month?
Using the information given below calculate the ROA for each of the banks.
Amounts in thousands
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. J.P Morgan 7.45% 1.123.318 8.441.249
4. National bank 22.79% 51.799 386.696
5. Qatar 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 BBB and BB credit ratings.
3. explain the difference between a line of credit and a 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 government?
5. how does the deposit compositions of small and large banks differ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Finance Core Theory Problems And Statistical Algorithms

Authors: Nikolai Dokuchaev

1st Edition

0415414482, 978-0415414487

More Books

Students also viewed these Finance questions

Question

Why is it necessary to rate the operator?

Answered: 1 week ago

Question

What advice would you provide to Jennifer?

Answered: 1 week ago

Question

What are the issues of concern for each of the affected parties?

Answered: 1 week ago