Suppose that a bank holds

$15m in treasury bonds

$10m in reserves

$30m of checkable deposits

$20m of time deposits

$6m of capital

How much loan does the bank have if we know it doesn't have any other assets or liabilities

Suppose that checkable deposits and reserves pay 0 interest

The interest rate on treasuries is 3%

The loan pays 7%

Time deposits pay 5%

How much profit does the bank make?

What is the bank's return on assets?

1. 3.2%
2. 2.9%
3. 3.7%
4. 2.6%