Question: Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR = 6.71% and = 3.54%. b. Charges

Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR = 6.71% and = 3.54%. b. Charges a 0.44 percent loan origination fee to the borrower. c. Imposes a 11 percent compensating balance requirement to be held as noninterest-bearing demand deposits. d. Holds reserve requirements of 9 percent imposed by the Federal Reserve on the banks demand deposits. Calculate the banks ROA

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