Given the following information for KNB bank, knowing that this is the overall financial data and any missing data refer to a zero account. Also, all the investments accounts in the assets section are considered to be short-term with maturity less than one year. Answer questions 1 to 4 below: choose the most NEAREST choice:

1- What is the approximate banks Net Interest Margin? *

4.83%

5.16%

6.12%

7.07%

None of the above

2- What is the approximate banks ROE? *

11.59%

8.71%

4.4%

3.3%

None of the above

3- Which of the following statements is most true about KNB bank? *

The bank has 58% Equity Financing, and 42% Debt Financing

The bank has 42% Equity Financing, and 58% Debt Financing

The bank has 63% Equity Financing, and 37% Debt Financing

The bank has 37% Equity Financing, and 63% Debt Financing

None of the above

4- Alfa bank, a competitor to KNB, has a temporary investment ratio of 6.58%. Which of the following statements is most true? *

KNB has a temporary investment ratio of 5.25%, indicating a lower liquidity compared to Alfa bank.

bKNB has a temporary investment ratio of 5.25%, indicating a higher liquidity compared to Alfa bank.

KNB has a temporary investment ratio of 3.09%, indicating a lower liquidity compared to Alfa bank.

KNB has a temporary investment ratio of 3.09%, indicating a higher liquidity compared to Alfa bank.

None of the above

The balance sheet for KNB is provided below: $ $ S S 4,100,750 2,725,750 502,250 5,326,000 KNB BALANCE SHEET 31-Dec-20 ASSETS LIABILITIES & EQUITY CASH AND DUE FROM BANKS $ 30,500 DEMAND DEPOSITS INVESTMENT SECURITIES $ 360,750 TIME DEPOSITS FED FUND SOLD S 0 FED FUND PURCHASED LOANS $ 6,215,500 EQUITY FIXED ASSETS $ 6,048,000 TOTAL ASSETS $ 12,654,750 TOTAL LIABILITIES & EQUITY Additional Data: Tax rate-30% Interest on Loans 9% Interest on Investments-7% Interest on Time Deposits=5% Interest on Fed Funds Purchased=4% Earning Assets are 70% of Total Assets Overhead Expenses=593,500 $ 12,654,750