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Question 1: A US Bank has demand deposits whereby they pay a rate of interest. The bank makes loans to US, UK, and EU clients

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Question 1: A US Bank has demand deposits whereby they pay a rate of interest. The bank makes loans to US, UK, and EU clients at a 33% split. The situation is as follows: Assets (loans) Invest @ $100.00 US USD @ 9% $100.00 UK GBP @ 15% $100.00 EU Euro @ 18% Liabilities (CDs) Borrow @ $300.00 US USD @ 8% $0.00 UK GBP @ 11% $0.00 EU Euro @ 10% Start (USD/GBP) End (USD/GBP) $1.50 $1.50 Start (USD/Euro) End (USD/Euro) $1.20 $1.20 What is the ROA if there is no change in FX rates What is the COF if there is no change to FX rates What is the ROI if there is no change to FX rates

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