Bank A has $195 in loans and $5 in cash as assets, with $190 in demand deposits

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Bank A has $195 in loans and $5 in cash as assets, with $190 in demand deposits as its sole form of debt. The loans have an interest rate of 5 percent while the bank pays a 3 percent interest rate on the demand deposits.

Calculate any relevant measures of the bank's profitability.

Related Book For answer-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Posted Date: Mar 27, 2023 02:32 AM

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Bank A has $195 in loans and $5 in cash as assets, with $190 in demand deposits

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Expert Answer:

Answer Worth of loan 195 Intrest rate on the loans 5 means 195x51... View the full answer

Financial Institutions Management A Risk Management Approach

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