Assignment 1B:

1. Create a personal Autosim.
1. Click on Games.
2. Click on New Autosim game.
3. Select Assignments Regional Bank template in using template. Note: Make sure NOT to choose Sample Regional Bank template.
4. Type a name for the new Autosim in New games name Assignment 1B
5. Click on Create Game

2. Input decisions to your new Autosim. There are five categories of decisions Bank Treasury, Asset-other, Asset-loans, Liabilities-deposits and Bank-general

3. In this assignment, we will increase our advertising expenses and compare the results to Assignment 1A.

4. Bank Treasury change the following:
1. Federal Funds Purchased (not Sold) = $50,000
2. 360 Days CDs to Issue = $50,000
3. The remaining boxes should all be zeroes.

5. Assets-other change the following:

4. Planned required reserves = $25,000
5. New Bonds to Purchase = $15,000
6. New provision for loan losses = $500

6. Assets-loans Double the advertising on Installment Loans and Mortgage Loans
1. Advertising for Installment Loans: Increase from 150 to 300
2. Advertising for Mortgage Loans: Increase from 80 to 160
3. Leave all the rest as is and Save.

7. Liabilities-deposits Double the advertising on all deposits.
1. Advertising for corporate demand deposits: Increase 580 to 1160
2. Advertising for retail demand deposits: Increase 410 to 820
3. Advertising on retail savings deposits: Increase from 140 to 280
4. Advertising on retail CDs: Increase from 290 to 580
5. Advertising on long-term retail deposits: Increase from 60 to 120.
6. Leave all the rest as is and Save.

Answer the following questions:

1. Compare the Quarter 1 installment and mortgage loans between Assignment 1B and Assignment 1A?
2. Compare the Quarter 1 corporate demand deposits, retail demand deposits, retail savings deposits, retail CDs and long-term retail deposits between Assignment 1A and 1B?
3. Did the increase in advertising in Assignment 1B make a difference? Which loan or deposit was impacted the most? the least?