Homework Answers
Bank A:
1. RoA = 2.18%
2. ROE = 8%
3. Leverage ratio = 2.66
Bank B:
1. ROA= 2.58 %
2. ROE = 12.4 %
3. Leverage ratios = 3.8
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required reserve ratio is 10%.
To fill in the following tables, instead of using a positive or
negative sign to indicate changes in the item, you need to write
down the value for items in each cell.
(A) Update the balance sheet if there is an unexpected deposit
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(B) How much more reserves this bank needs to meet the
requirement?
(C) Write down all...
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