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Question no. 1 (2*4-8 marks) On the basis of information provided below in balance sheets of Bank A and B; calculate following ratios for each

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Question no. 1 (2*4-8 marks) On the basis of information provided below in balance sheets of Bank A and B; calculate following ratios for each bank: Return on Assets (ROA) Return on Equity (ROE) Leverage Ratio Debt to Equity ratio . Assets Securities Loans Reserves Bank A Liabilities 120 Deposits 500 Borrowings 80 Capital 450 150 100 Assets Securities Loans Reserves Bank B Liabilities 100 Deposits 500 Borrowings 50 Capital 450 150 50 Additional Information: Bank A has net profit after tax of Rs. 15 Bank B has net profit after tax of Rs. 10 Question no. 2 (2 marks) Again consider same information provided in question no. I and explain with logical reasoning; which bank has more liquidity risk

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