(please provide detail calculation procedures)

100th National Bank has the following balance sheet:

Assets Liabilities

Reserves $ 60 million Checkable deposits $100 million

Cash 5 million Certificated Deposits 150

T-bills 55 million Saving deposits 100

T-bonds 100 million Borrowing (BTFP) 80

Residential Mortgage 200 Million Inter-bank lending 80

Commercial Loans 155 million Bank capital 65 million

Note: BTFP: Bank Term Funding Program, expiring in March 2024.

Part A: What is the equity Multiplier? (5 points)

Part B: If the required reserve ratio is 10%, the bank decides to keep no excess reserve (there is no extra reserve). What will you do? Provide your reasonings that fit the current economic situation (as well as the current monetary environment). (15 points) Please show the new T-account.

Part C: customers want to catch the train for high-interest rates and withdraw 8 million from their checking accounts. Please answer to comply with the regulation for required reserve and show the new T-account. (5 points)

Part D: If the ROA for this bank is 1.5%, what is the ROE? (5 points)

Part E: The bank has $300M off-balance sheet item. Using the most recent T-account, what is the risk-weighted capital ratio? Is the bank well capitalized? (10 points)

Part F: The current forecast by Wall Street & CME (Feds watch tool 12/3/2023) shows the Fed would lower the Feds fund rates 5 times by the end of 2024 (25 bps each). How much (and in which direction) will bank profits change according to the basic gap of this bank? (10 points)