Answer the following questions regarding the balance sheet given below. Assume 1 = $1.40. a) Is...
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Answer the following questions regarding the balance sheet given below. Assume £1 = $1.40. a) Is this bank net short or net long? b) What is the net interest income (NII) if the value of the £ appreciates to $1.65? c) What is the net interest margin (NIM) if the value of the £ depreciates to $1.15? Liabilities and Equity $800M in USD $200M in GBP Assets $300M in USD $700M in GBP Country US UK Deposit Rate 6% 8% Lending Rate 7% 9% Answer the following questions regarding the balance sheet given below. Assume £1 = $1.40. a) Is this bank net short or net long? b) What is the net interest income (NII) if the value of the £ appreciates to $1.65? c) What is the net interest margin (NIM) if the value of the £ depreciates to $1.15? Liabilities and Equity $800M in USD $200M in GBP Assets $300M in USD $700M in GBP Country US UK Deposit Rate 6% 8% Lending Rate 7% 9%
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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