Angus bank holds no excess reserves but complies with the reserve requirement. the required reserves ratio is 8%, and reserves are currently $25million.
the amount of deposits is $312.5 million. (round your response to one decimal place.)
the reserve shortage created by a deposit outflow of $4million is $ −3.68 million. (round your response to two decimal places.)
the cost of the reserve shortage if angus bank borrows in the federal funds market (assume the federal funds rate where did the -3.68 and $11040 come from? ? is 0.30 %)is $11,040
suppose first national bank holds $100million in assets with an average duration of 5years, and it holds$85 million in liabilities with an average duration of 3years. further suppose there is a5 -percentage-point increase in interest rates. calculate the percentage decrease in first national bank's net worth relative to the total original asset value.
a5 -percentage-point increase in interest rates decreases first national bank's net worth by__% of the total original asset value
suppose that you are the manager of a bank that has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5 percentage points.
the change in bank profits is $