Question 21

A bank having the balance sheet shown below has reported a Net Income of $19.24. Calculate the equity multiplier 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.	11.875
	B.	12.5
	C.	0.08
	D.	11.5
	E.	None of the other responses are correct.