Unit 6 Assignment

Get perfect grades by consistently using www.assignmentgeeks.org. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Assignment 1: Problems

Complete Questions and Problem 8 in Chapter 18

Complete Questions and Problem 6 in Chapter 26

Please submit one Word file, including a title page to the Dropbox for the Unit 6 Assignment 1.

All work submitted must be in your own words and all calculations must be shown. No credit will be given for the correct answer alone. Any calculations should be done in Excel and pasted into the Word document using the “Paste Special-Excel Worksheet Object” feature. This will allow the instructor to double click on the students work to see the formulas and calculations used to answer the selected problems.

Chapter 18 Problem 8

The average daily net transaction accounts balance of a local bank during the most recent reserve computation period is $325 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $22.6 million and the average daily vault cash corresponding to the computation period is $4.3 million.

  • What is the average daily reserve balance required to be held by the bank during the maintenance period?
  • Is the bank in compliance with the reserve requirements?
  • What amount of reserves can be carried over to the next maintenance period either as excess or as shortfall?
  • If the local bank has an opportunity cost of 6 percent and deposits at the Fed pay 0.5 percent, what is the effect on the income statement from this reserve period?

Chapter 26 Problem 6

An FI is planning to issue $100 million in BB rated commercial loans. The FI will finance the loans by issuing demand deposits.

  • What is the minimum amount of capital required under Basel III?
  • What is the minimum amount of demand deposits needed to fund this loan assuming there is a 10 percent average reserve requirement on demand deposits?
  • Show a simple balance sheet with total assets, total liabilities, and equity if this is the only project funded by the bank.
  • How does this balance sheet differ from Table 26–1? Why?

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Need help with an assignment? We work for the best interests of our clients. We maintain professionalism and offer brilliant writing services in most of the fields ranging from nursing, philosophy, psychology, biology, finance, accounting, criminal justice, mathematics, computer science, among others. We offer CONFIDENTIAL, ORIGINAL (Turnitin & SafeAssign checks), and PRIVATE services using the latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and doctorate-prepared writers. Thank you in advance!

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper