Question 3 please

Mailings v 1 PS 1(1) (1) - Compatibility Mode - Saved to my Mac Review View 1 1 AaBbCcDdE AaBbCcDdE No Spacing AaBbCcDc Ac Heading 1 He Normal d. (4 pts.) Given that the required reserve ratio stayed at 6%, what is the new excess reserve ratio? Show your work. 3. (30 pts.) Based on the information provided below about banks A and B, compute for each bank its retum on assets (ROA), return on equity (ROE), leverage ratio (bank assets divided by bank capital), and debt/equity ratio. a. (15 pts.) Bank A has net profit after taxes of $1.8 million and the balance sheet below: Bank A (in millions) Assets Reserves Loans Securities SS Deposits $70 Borrowing 545 Bank Capital Liabilities $100 $10 S10 b. (15 pts.) Rank has met profit after taxes of $0.9 million and the balance sheet below I Rank B (in millions) Assets Liabilities $75.0 573 Deposits $550 Borowing $23.5 Bank Capital 58.0 ed States) O Focus V