Consider a bank with the following balance sheet. You read in the local newspaper that the banks
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Consider a bank with the following balance sheet. You read in the local newspaper that the bank’s return on assets (ROA) was 1 percent. What were the bank’s after-taxprofits?
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Bank Balance Sheet (in thousands) Assets $100 Deposits S500 Borrowing S500 Bank Capital Liabilities $1,000 S0 $100 Reserves Loans Securities
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Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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