Time	Expected principal payment ($ Million)
Year 1	1000
Year 2	1000
Year 3	1000
Year 4	1000

1. The above table shows a mortgage that will be paid in 4 instalments over 4 years, the weighted Average life of the mortgage (WAL) is:

a.2 years

b. 2.5 years

c.None of the other listed options is correct.

d. 4 years

2. A bank made $ 100 million of net income and follows a 50% dividends payout of its net income. If the bank depends completely on internal capital and had assets of 10 billion and a target capital of 10% beginning of the year. The bank can increase its assets by $500 million next year.

Select one:

True

False

3.

XYZ bank has the following data for 2018($4,872,000 net income, $283,200,000 total assets, 21,400,000 Equities). XYZ bank has the following data for 2019 ($5,073,600 net income, $313,200,000 total assets, 21,600,000 Equities). Using the data provided above, ROE for XYZ bank for 2018 is:

A.4,872,000 / 283,200,000

B.None of the other listed options is correct

C.(12,000,000 + 2,160,000) /283,200,000

D. (4,872,000/ 283,200,000) /21,600,000

E. 4, 872,000/ 21,400, 000