I need help answering these specific questions. Please provide steps if necessary. 1. Comment on the sensitivity of deposits and loans to advertising expenses using the numbers derived in the shaded cells.

2. Estimate the additional cost incurred for accessing the discount window advances in Quarter 1.

3. Estimate the cost of deposit insurance for the quarter 2.

Summary Balance Sheet Q0 Q1 Q2 ASSETS Required Reserves (at the Federal Reserve) Column A 61396.86 63277.70 81743.84 % Change Excess Reserve Balances 0.00 0.00 117103.72 Q0 to Q1 Federal Funds Sold 0.00 0.00 58402.04 Fixed Rate Corporate Loans 291725.87 377443.17 448169.69 Floating Rate Corporate Loans 710767.97 838677.78 1075392.40 Installment Loans 671094.64 689724.23 786062.05 2.78 Mortgages 749651.78 748544.08 798096.86 -0.15 Bonds 420000.00 420000.00 420000.00 Fixed Assets 46434.00 45273.15 44141.32 Loan Loss Allowance 9858.61 9818.30 12156.97 Total Assets 2941212.50 3173121.80 3816954.95 LIABILITIES Federal Funds Purchased 75000.00 100000.00 100000.00 Retail Demand Deposits 307141.52 311318.87 375905.69 1.36 Corporate Demand Deposits 306827.12 321458.14 441532.75 4.77 Negotiable CDs 396000.00 397000.00 548000.00 Passbook Deposits 177863.46 203370.04 258573.40 14.34 Retail CDs 707980.35 804813.56 1013712.79 13.68 Long-term Retail Deposits 673690.90 704610.10 802184.49 4.59 Discount Window Advances 22694.44 52352.84 0.00 Net Worth and Retained Earnings 274014.72 278198.26 277045.83 TOTAL LIABILITIES AND NET WORTH 2941212.50 3173121.80 3816954.95 Column B Column C Column D % Change % Change Difference Q1 to Q2 Q1 to Q2 25% Increase No increase Ad Expenses Ad Expenses 13.97 12.29 1.68 6.62 5.54 1.08 20.75 0.79 19.96 37.35 1.28 36.07 27.14 24.59 2.55 25.96 24.86 1.10 13.85 13.16 0.69 Column B-C qattachments_80b0c34db90122800e768b084a0d059725a5e444 2016-09-29T11:43:02Z 1900-01-01T12:00:00Z ProBanker Simulations U.S. Banking Simulation Game Kayle Ackerman Assignment 2 Game mode Autobank Page 2 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Last quarter simulated 2 Total number of markets 1 Total number of banks 1 Simulated at 2016-09-29 11:43:02 Reporter version v1.1.0 600 600 15 80 Page 3 qattachments_80b0c34db90122800e768b084a0d059725a5e444 1 1 2 3 2 2 False False Bank Performance Report Q0 Q1 Q2 Bank 1 Quarter 0 Page 4 qattachments_80b0c34db90122800e768b084a0d059725a5e444 1 2 Bank 1 Market Value 245106.565244674 225965.195475436 162098.334172722 Bank 1 No. times recapitalized 0 0 0 Bank 1 Cumulative Dividends 0 Page 5 qattachments_80b0c34db90122800e768b084a0d059725a5e444 0 0 Bank 1 Price per Share 245.106565244674 225.965195475436 162.098334172722 Bank 1 Current Net Income 6419.79413938007 4183.54363493697 -1152.43251719468 Bond Market Report Q0 Q1 Page 6 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Q2 Quarter 0 1 2 Floating-rate Loan Base 4.23 4.23 4.23 Gross Domestic Product ($ billions) 4918.73 4970.74556975 5023.31120415011 Page 7 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Maturing start of: Quarter T+1 Market Price (T+1) 1000 1000 1000 Market Yield (T+1) Coupon Amount (T+1) Page 8 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Quarter T+2 Market Price (T+2) 1004.94767830196 1004.94767830196 1004.94767830196 Market Yield (T+2) 4.23 4.23 4.23 Coupon Amount (T+2) 62.3 62.3 62.3 Page 9 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Quarter T+3 Market Price (T+3) 1006.89806561565 1006.89806561565 1006.89806561565 Market Yield (T+3) 4.83 4.83 4.83 Coupon Amount (T+3) 62.3 62.3 62.3 Page 10 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Quarter T+4 Market Price (T+4) 1008.82376024867 1008.82376024867 1008.82376024867 Market Yield (T+4) 5.03 5.03 5.03 Coupon Amount (T+4) 62.3 62.3 62.3 Quarter T+5 Page 11 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Market Price (T+5) 1009.77171927516 1009.77171927516 1009.77171927516 Market Yield (T+5) 5.23 5.23 5.23 Coupon Amount (T+5) 62.3 62.3 62.3 Quarter T+6 Page 12 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Market Price (T+6) 1009.18422247464 1009.18422247464 1009.18422247464 Market Yield (T+6) 5.48 5.48 5.48 Coupon Amount (T+6) 62.3 62.3 62.3 Quarter T+7 Page 13 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Market Price (T+7) 1007.45728600601 1007.45728600601 1007.45728600601 Market Yield (T+7) 5.73 5.73 5.73 Coupon Amount (T+7) 62.3 62.3 62.3 Quarter T+8 Market Price (T+8) Page 14 qattachments_80b0c34db90122800e768b084a0d059725a5e444 1004.6333093049 1004.6333093049 1004.6333093049 Market Yield (T+8) 5.98 5.98 5.98 Coupon Amount (T+8) 62.3 62.3 62.3 Quarter T+9 Market Price (T+9) 1000 Page 15 qattachments_80b0c34db90122800e768b084a0d059725a5e444 1000 1000 Market Yield (T+9) 6.23 6.23 6.23 Coupon Amount (T+9) 62.3 62.3 62.3 Economic Environment Q0 Q1 Page 16 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Q2 Quarter 0 1 2 Capital Requirements Minimum Tier I + Tier II Capital to Risk Assets 8 8 8 Minimum Tier I Capital to Risk Assets 4 4 4 Page 17 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Minimum Tier I Capital to Total Assets 3 3 3 Deposit Restrictions Retail Demand Deposits Reserve Requirement 10 10 10 Interest Rate Ceiling 0 0 Page 18 qattachments_80b0c34db90122800e768b084a0d059725a5e444 0 Corporate Demand Deposits Reserve Requirement 10 10 10 Interest Rate Ceiling 0 0 0 Passbook Savings Deposits Reserve Requirement Page 19 qattachments_80b0c34db90122800e768b084a0d059725a5e444 0 0 0 Interest Rate Ceiling 9900 9900 9900 Retail CDs Reserve Requirement 0 0 0 Interest Rate Ceiling -9900 Page 20 qattachments_80b0c34db90122800e768b084a0d059725a5e444 -9900 -9900 Long-term Retail Deposits Reserve Requirement 0 0 0 Interest Rate Ceiling -9900 -9900 -9900 Negotiable CDs Reserve Requirement Page 21 qattachments_80b0c34db90122800e768b084a0d059725a5e444 0 0 0 Asset Risk Weights Required Reserves 0 0 0 Excess Reserves 20 20 20 Federal Funds Sold Page 22 qattachments_80b0c34db90122800e768b084a0d059725a5e444 20 20 20 Fixed Rate Corporate Loans 100 100 100 Floating Rate Corporate Loans 100 100 100 Installment Loans 100 100 100 Page 23 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Mortgages 50 50 50 Bonds 0 0 0 Fixed Assets 100 100 100 Other Rates Page 24 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Annualized FDIC Premium (% of insured deposits) 0.28 0.28 0.28 Annualized Penalty Premium on Discount Window Advances 5 5 5 Percentage of Nonperforming Loans in Loan Loss Allowance 100 100 100 Corporate Income Tax Rate 35 Page 25 qattachments_80b0c34db90122800e768b084a0d059725a5e444 35 35 Long-Term Capital Gains Tax Rate 35 35 35 Minimum Holding Period for L.T. Capital Gains 0 0 0 Simulation Simulation Version 3.03 4.0201 Page 26 qattachments_80b0c34db90122800e768b084a0d059725a5e444 4.0201 600 600 15 80 1 1 2 3 2 2 False False Average Balance Sheet Q0 Page 27 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Q1 Q2 Quarter 0 1 2 ASSETS Required Reserves 61396.8637663735 63277.700699089 81743.8441634055 Excess Reserves 0 0 Page 28 qattachments_80b0c34db90122800e768b084a0d059725a5e444 117103.7233194 Federal Funds Sold 0 0 58402.0381569965 Federal Funds (Rate) 4.23 4.23 4.23 Fixed Rate Corporate Loans 291725.871817873 377443.171941018 448169.685890459 Page 29 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Fixed Rate Corporate Loans (Rate) 9.3 9 8.7 T+1 352824.270457212 357943.694931975 480734.083346438 T+1 (rate) 4 4 3.7 T+2 Page 30 qattachments_80b0c34db90122800e768b084a0d059725a5e444 357943.694931975 480734.083346438 594658.315450688 T+2 (rate) 4 3.7 3.4 T+1 178591.069199572 145701.700144703 189952.012319771 T+1 (rate) 11 Page 31 qattachments_80b0c34db90122800e768b084a0d059725a5e444 11 11 T+2 145701.700144703 189952.012319771 156849.854878268 T+2 (rate) 11 11 11 T+3 189952.012319771 156849.854878268 197220.663800871 Page 32 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+3 (rate) 11 11 10.7 T+4 156849.854878268 197220.663800871 242039.516532764 T+4 (rate) 11 10.7 10.4 Page 33 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+1 112036.88992691 99442.5066245791 92718.2619429108 T+1 (rate) 9 9 9 T+2 99442.5066245791 92718.2619429108 80853.1583186197 T+2 (rate) 9 9 Page 34 qattachments_80b0c34db90122800e768b084a0d059725a5e444 9 T+3 92718.2619429108 80853.1583186197 95976.6519583529 T+3 (rate) 9 9 9 T+4 80853.1583186197 95976.6519583529 94646.2350111155 Page 35 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+4 (rate) 9 9 9 T+5 95976.6519583529 94646.2350111155 88035.5180566026 T+5 (rate) 9 9 9 T+6 94646.2350111155 88035.5180566026 Page 36 qattachments_80b0c34db90122800e768b084a0d059725a5e444 85942.5564446368 T+6 (rate) 9 9 9 T+7 88035.5180566026 85942.5564446368 110929.187261696 T+7 (rate) 9 9 8.7 T+8 Page 37 qattachments_80b0c34db90122800e768b084a0d059725a5e444 85942.5564446368 110929.187261696 148995.295791966 T+8 (rate) 9 8.7 8.4 T+1 52500 52500 52500 T+2 Page 38 qattachments_80b0c34db90122800e768b084a0d059725a5e444 52500 52500 52500 T+3 52500 52500 52500 T+4 52500 52500 52500 T+5 52500 52500 52500 Page 39 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+6 52500 52500 52500 T+7 52500 52500 52500 T+8 52500 52500 52500 Fixed Assets 46434 Page 40 qattachments_80b0c34db90122800e768b084a0d059725a5e444 45273.15 44141.32125 Loan Loss Allowance 9858.61421330786 9818.30321233724 12156.9731295592 TOTAL ASSETS 2941212.50158617 3173121.80446831 3816954.9507654 LIABILITIES Federal Funds Purchased 75000 Page 41 qattachments_80b0c34db90122800e768b084a0d059725a5e444 100000 100000 Federal Funds Purchased (rate) 4.23 4.23 4.23031359809837 Demand Deposits Retail 307141.519897271 311318.86973397 375905.688421504 Retail (rate) 0 0 Page 42 qattachments_80b0c34db90122800e768b084a0d059725a5e444 0 Corporate 306827.117766464 321458.13725692 441532.753212551 Corporate (rate) 0 0 0 T+1 99000 99000 174000 Page 43 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+1 (rate) 5.23 5.23 4.79913448173404 T+2 99000 99000 174000 T+2 (rate) 5.23 5.23 5.05781149288676 T+3 Page 44 qattachments_80b0c34db90122800e768b084a0d059725a5e444 99000 99000 100000 T+3 (rate) 5.23 5.23 5.23 T+4 99000 100000 100000 T+4 (rate) 5.23 5.23 5.23078399524592 Page 45 qattachments_80b0c34db90122800e768b084a0d059725a5e444 Passbook Savings Deposits 177863.459726845 203370.036832814 258573.403810516 Passbook Savings Deposits (rate) 5 6 7 T+1 345657.155342138 362323.19445944 442490.361716239 Page 46 qattachments_80b0c34db90122800e768b084a0d059725a5e444 T+1 (rate)