Question 22 (4 points)

What is the return on assets for the bank? Amount ($millions) Amount ($millions) Cash 90 Interest Income Inv. Securities 250 Securities 6.175 Net Loans Business Loans 19.250 Business Loans 350 Mortgages 9.140 Mortgages 200 Installment Loans 18.225 Installment Loans 270 Credit Cards 10.557 Credit Cards 90 Interest Expense Loan Loss Reserve 10 Demand Deposits 2.376 Other Assets 90 Savings Accounts 3.570 Total Assets 1340 Time Deposits 10.680 Purchased Funds 3.294 Demand Deposits Loan Loss Provision 2.500 Non-Int Bearing 160 Non-Interest Income 20.018 Interest Bearing 240 Non-Interest Expense 40.236 Savings Accounts 300 Capital Gains/Losses 0.278 Time Deposits 400 Before Tax Income 20.987 Purchased Funds 90 Taxes 7.136 Equity 150 Net Income 13.851 Total Liab and Equity 1340

Question 22 options:

1)

1.19%

2)

1.34%

3)

1.57%

4)

1.81%

5)

1.03%