Question: Need help with question 2 Below is a modied balance sheet of a bank millions ofdollars Liabilities + Capital Reserves $52 Checakble Deposits $169 Loans

Need help with question 2

Below is a modied balance sheet of a bank millions ofdollars Liabilities + Capital Reserves $52 Checakble Deposits $169 Loans Savings deposit $126 Short term loans 528 Real estate loans 5195 Federal funds lent $12 Securities $18 Borrowing 52 Other 527 A. Calculate capital and leverage ratio 10.54% B. ROA was 1.2%. calculate roe 1.2*(1/10.54) C. Suppose the reserve requirement was 10%. Calculate excess reserves of the bank 35-(332*10%) 2. refer to the values calculated in the previous problem D. Suppose the average duration of assets is 5 and average duration of liabilities is 1. If interest rates increase by one point, what is the new value of capital? E. Suppose gap between assets and liabilities is $30m. if interest rates increase by one point, what is the change in total profit

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