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Question 3 Based on the information provided below about 3T Bank, given that the net profit after taxes of $4.2 million. Compute 3T Bank's reserve
Question 3 Based on the information provided below about 3T Bank, given that the net profit after taxes of $4.2 million. Compute 3T Bank's reserve level (RL), return on assets (ROA), return on equity (ROE), leverage ratio (LR) and use an alternative method to confirm your answers are correct. (15 marks) i) 3T Bank's balance sheet is as follows: 3T Bank (in millions) Assets Liabilities Reserves $?? Deposits $200 Loans $150 Borrowing $30 Securities $80 Bank Capital $50 ii) Assume that the currency-to-deposit ratio is 25%, and 3T Bank keeps $10 million excess reserve. Compute 3T Bank's money multiplier and discuss the non-central bank controllable factors that affect the quantity of money. (10 marks) (Total : 25 marks) 1 Windows Question 3 Based on the information provided below about 3T Bank, given that the net profit after taxes of $4.2 million. Compute 3T Bank's reserve level (RL), return on assets (ROA), return on equity (ROE), leverage ratio (LR) and use an alternative method to confirm your answers are correct. (15 marks) i) 3T Bank's balance sheet is as follows: 3T Bank (in millions) Assets Liabilities Reserves $?? Deposits $200 Loans $150 Borrowing $30 Securities $80 Bank Capital $50 ii) Assume that the currency-to-deposit ratio is 25%, and 3T Bank keeps $10 million excess reserve. Compute 3T Bank's money multiplier and discuss the non-central bank controllable factors that affect the quantity of money. (10 marks) (Total : 25 marks) 1 Windows
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