Question: If you can help answer these 4 questions please. 1. Bank Nishapur started its first day of operations with $10 million capital and received a
If you can help answer these 4 questions please.
1. Bank Nishapur started its first day of operations with $10 million capital and received a total of $200 million dollar of deposits. The bank makes a $20 million of commercial loans and another $40 million in mortgage loans. If reserve ratio is 5%, what does bank balance sheet kook like?
2. Suppose that Bank Agni has an $200 billion of assets with an average duration of 3 years, and has 150 million of liabilitieswith average duration of 5 years. What will be effect on the net worth of the bank if interestrate rises by 3%?What actions could bank take to reduce bank
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