Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following balance sheet is available for Smith Bank (in millions). Which of the following is true? Assets Potential Potential Amount Liabilities Potential Potential Amount
The following balance sheet is available for Smith Bank (in millions). Which of the following is true?
Assets | Potential | Potential | Amount | Liabilities | Potential | Potential | Amount |
Rate | Withdrawal | in | Rate | Withdrawal | in | ||
Change | 6-month | millions | Change | 6-month | millions | ||
90-day Treasury Bills | 0.50% | $25 | 30-day CDs | 0.25% | $50 | ||
180-day Treasury Bills | 0.75% | $35 | 90-day CDs | 0.35% | $100 | ||
1-year Treasury Bills | 1.00% | $50 | Savings Deposits | 0.10% | $50 | ||
1-year consumer loans | 1.25% | 20% | $200 | Time-Deposits 180-day | 0.60% | $200 | |
5-year Consumer loans | 1.50% | 20% | $150 | Time Deposits -2 years | 1.00% | 30% | $235 |
10-year Corporate Loans | 1.75% | 15% | $250 | Stockholder's equity | $75 | ||
Total | $710 | Total | $710 |
Including potential withdrawals and excluding savings deposits, the six-month earnings at risk is $238,750
| ||
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $188,750
| ||
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $205,500
| ||
Including potential withdrawals and including savings deposits, the six-month earnings at risk is $436,250 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started