Question: Please answer Based on the information provided below about 3T Bank, given that the net profit after taxes of $4.2 million. Compute 3T Bank's reserve
Based on the information provided below about 3T Bank, given that the net profit after taxes of $4.2 million. Compute 3T Bank's reserve level (RL), return on assets (ROA), return on equity (ROE), leverage ratio (LR) and use an alternative method to confirm your answers are correct. (15 marks) i) 3T Bank's balance sheet is as follows: 3T Bank (in millions) Assets Reserves Loans Securities $?? Deposits $150 Borrowing $80 Bank Capital Liabilities $200 $30 $50 ii) Assume that the currency-to-deposit ratio is 25%, and 3T Bank keeps $10 million excess reserve. Compute 3T Bank's money multiplier and discuss the non-central bank controllable factors that affect the quantity of money. (10 marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
