Money and Banking

 

1. Based on the information provided below about banks A and B, compute for each bank its return on assets
(ROA), return on equity (ROE) and leverage ratio.
a. Bank A has net profit after taxes of $1.8 million and the balance sheet below:
Bank A
(in millions)
Assets Liabilities
Reserves $5 Deposits $100
Loans $70 Borrowing $10
Securities $45 Bank Capital $10
b. Bank B has net profit after taxes of $0.9 million and the balance sheet below:
Bank B
(in millions)
Assets Liabilities
Reserves $7.5 Deposits $75.0
Loans $55.0 Borrowing $3.0
Securities $23.5 Bank Capital $8.0
2. Explain how a bank uses liability management to respond to a deposit outflow. Why do banks prefer liability
management to asset management?
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FRED QUESTIONS
1. Are U.S. banks increasing in size? Use FRED to plot since 1984 on a quarterly basis the number of U.S.
commercial banks (FRED code: USNUM) and, on the right scale, the volume of their deposits (FRED code:
DPSACBM027SBOG). Download the data and compute the average deposit size of banks in the first quarters
of 1984 and 2016.
2. What share of U.S. banks fail? Plot since 2000 the fraction (in percent) of bank failures (FRED code:
BKFTTLA641N) relative to the number of banks (FRED code: USNUM). Comment on the timing and the
proportion of failures. Were most of the failing banks large or small?

Sample Solution

The Passionate Shepherd Poems Energetic shepherd’s sonnet “Enthusiastic shepherds love him” (Marlow), “Reaction to the pixie’s shepherd” (Raleigh), “Tune” (Lewis) all have a similar essential plot and character I am focusing on it. In any case, in words and conclusions. This distinction for the most part relies upon the speaker of the refrain. Poor people shepherd is the voice of “an enthusiastic shepherd cherishes him” and “a melody”. In any case, the mentalities of the shepherds of these two sonnets are practically inverse. Sheepherds of “eager shepherds love him” is a sentimental optimist drawing the arrangement’s unique verse, his top choice “rose bed” and excellent pictures for rich young ladies . … “The Passionate Shepherd” is a tranquil sonnet. Charming verse for the most part centers around the shepherd’s affection for a young lady, (for example, Marlow’s verse), the passing of a companion, or the serenity of nation life. An ideal essayist is a urban occupant taught like Marlow and commendations the shepherd’s young lady’s ethicalness or is on edge for the nation’s tranquility and serenity. The peaceful is from the Latin cleric, the shepherd … … Chistopher Marlowe set this sonnet in the nation in the late-winter, and the shepherds like their herd. It would be ideal if you utilize the word Madrigals (line 8) – set up the verse with a good soundtrack and sing a dreary tune or 2 to 6 joined tune – peaceful tunes in different pieces of the UK and Europe When it was exceptionally well known. Be that as it may, since this is the all inclusiveness of that topic, this sonnet can be a shepherd of all ages in each nation. This sonnet is a reference to Walter Raleigh’s sonnet “Fairy’s answer to the shepherd” (This is a reaction to Marlow’s sonnet “Energetic shepherd’s energy”). In the peaceful history of Mahlow, the shepherd requested that his paramour appreciate the delight of nature with him. In the response of Raleigh, Nymph accepts that on the planet where individuals are more seasoned and the blossoms are blurring, it is outlandish for a glad peaceful presence. William Carlos Williams concurs with Raleigh in the title of his sonnet that he accepts that nature doesn’t give a glad breathing chance to common consideration. Rather, he composed that even violets are encircled by “spear molded leaves” and represent the way viciousness (spoke to by the leaves of these lances) hides in characteristic excellence.

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