$19-21.$ In the example below, we will use year$-$end assets.

Bank A receives $$70$ in deposits at $5\%$ and, together with $$50$ in equity, makes a loan of $$120$ at $7\%.$ We will ignore taxes for the moment. ROA $=\%.$

a$.3\mathrm{.}65$ b$.4\mathrm{.}08$

c$.5\mathrm{.}54$

d$.7\mathrm{.}77$

e$.7\mathrm{.}02$ f$.8\mathrm{.}8$ g$.9\mathrm{.}80$ h$.10$ i$.13$

$\backslash$table$[[$Bank A$,],[$Loan $7\%,$$$120,$Deposits,$5\%,$$$70$