Question

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987 to contribute to the safety and soundness of the Canadian financial system. OSFI supervises and regulates federally registered banks and insurers, trust and loan companies, as well as private pension plans subject to federal oversight.

Go to OSFI website - under Financial Institutions - select Financial Data - select Bank. Populate the most recent consolidated balance sheet of the bank of your choice, and attach a printout.

What is the total amount of loans held by the bank

What is this number as a percentage of total bank assets?

Calculate the Equity Multiplier.

Would you buy the share of this bank as an investment? Explain

pleas type, do not hand write

Answer 1

B

Since deposit is decreased by transferring to another bank, then asset will also decrease by the same size to create a balance in the balance-sheet.

30.

A

If deposit increases in a particular bank, then that deposit will be used to lend other firms or households after maintaining the sufficient reserve requirements.

Q. 27 and 28 has improper tabular data so these questions cannot be solved. For example in Q 27, if deposit is 2000 and reserve ratio is 10%, then required reserve = 2000*10% = 200

But, bank holds only 60+100 = 160 as total reserves. S0, no excess reserve is created, but alternatives in Q. 27 are not giving this option.

So, repost the question 27 and 2