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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:
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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