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For the next twelve questions on the exam, you'll answer questions related to Kappa Bank, which has the following balance sheet information: In addition, we

For the next twelve questions on the exam, you'll answer questions related to Kappa Bank, which has the following balance sheet information:

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In addition, we know the following:

  • Use the same reserve requirements we've used in all graded assignments.
  • Interest income is $600.
  • Non-interest income is $210.
  • Interest expense is $110.
  • Non-interest expense (made up only of wages and salaries) is $150.
  • No loans are charged off, but 20% of loans to firms are nonperforming.
  • All discount loans will be repriced in the next 10 days.
  • In four months, half of loans to firms will be repriced.
  • In two years, half of home mortgage loans will be repriced.
  • Assume anything not listed or calculable with the info given equals 0.

Calculate this bank's amount of discount loans, carefully following all numeric instructions.

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