Question
I i am currently taking Fin 221. This is a hard problem i do not understand please help! This is very confusing and tough. The
I i am currently taking Fin 221. This is a hard problem i do not understand please help! This is very confusing and tough. The question is in the attached image below thank you!!.
4.(10) Your bank has the following balance sheet. Assets Liabilities____________________________ Reserves $ 30 million Checkable deposits $250 million Securities 40 million Loans 200 million Bank capital 20 million Total Assets $ 270 million Total Liabilities and Capital $270 million a. Restate the balance sheet if there is a write-down in the loan portfolio of $30 million. Answer: Loans = ________________ Capital = _______________________ Total Assets = __________________ Total Liabs & Capital = __________________
b. Does this cause any problem for this bank? Please describe. Answer: _____________________________________________________________
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