Question: Question 19 A bank having the balance sheet shown below has reported a Net Income of $16. Calculate the ROE for this bank. Assets Amount

Question 19

A bank having the balance sheet shown below has reported a Net Income of $16. Calculate the ROE for this bank.

Assets

Amount

Liabilities and Equity

Amount

Cash

80

Non-interest deposits

150

Securities

300

NOW checking

150

Loans, net

570

MMDA

300

Fed funds sold

0

CDs

170

Non-earning assets

50

Fed Funds purchased

150

$1,000

Equity

80

$1,000
A.

20.00%
B.

24.05%
C.

17.39%
D.

1.60%
E.

None of the other responses are correct.

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