Question

An example of an off-balance sheet contract entered into by a bank would be: A. a...

An example of an off-balance sheet contract entered into by a bank would be:

A.

a securitisation agreement

B.

a housing loan

C.

a negotiable certificate of deposit

D.

a term deposit

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An example of off balance sheet activity includes: lending money to a depositor. borrowing from another...
An example of off balance sheet activity includes: lending money to a depositor. borrowing from another bank. borrowing from the Federal Reserve. purchasing a futures contract.
The balance sheet below shows the effect of a new 3,800 deposit in Bank A. Assume...
The balance sheet below shows the effect of a new 3,800 deposit in Bank A. Assume that the commercial banks have established a 16 percent desired reserve and that no bank holds excess reserves. BANK A Assets Liabilities Reserves 3,800 Deposits 3,800 Loans 0 Assume that Bank A lends its excess reserves to Mr. Jones who spends the proceeds of the loan. Show Bank A's new balance sheet BANK A Assets Liabilities Reserves   Deposits Loans The money Mr. Jones borrows...
A bank has the following balance sheet Assets                                  &nbs
A bank has the following balance sheet Assets                                      Liabilities                            Reserves          $100 million      Deposits      $450 million Loans              $500 million      Capital        $150 million a). How much does this bank maintain in terms of reserve ratio? (Hint: the reserve ratio is NOT 10%. It is just an example discussed in the slides and in the book. You need to calculate the reserve ratio maintained by this bank). b). Suppose the bank has an increase in deposit inflows in the amount of $50 million. It chooses not to make any additional...
Consider that there is only one bank and its balance sheet is as follows Use it...
Consider that there is only one bank and its balance sheet is as follows Use it to answer the next 3 questions. Assets Liabilities Reserves $60 Demand Deposits $500 Loans $440 Let rrD = 10% 99. This bank currently has _____ in excess reserves. a. $0 b. $5 c. $10 d. $50 e. $450 100. If $100 in demand deposits were withdrawn as cash, what would be the bank’s level of undesired excess reserves? a. negative $30 b. negative $50...
The more bank capital the bank holds on its balance sheet, the better off are its...
The more bank capital the bank holds on its balance sheet, the better off are its equity holders. Is this true, false or uncertain? Explain.
1. Which balance sheet would a bank rather have, Why? (assume a RRR of 10%) (a)...
1. Which balance sheet would a bank rather have, Why? (assume a RRR of 10%) (a) ASSETS |    LIABILITIES Reserves 100M | Deposits 500M Loans 500M | Bank Capital 100M OR (b) ASSETS | LIABILITIES Reserves 75M | Deposits 500M Loans 525M | Bank Capital 100M 2. If a deposit outflow of 50M occurs, which balance sheet would a bank rather have initially, Why? (assume a RRR of 10%)
Give an example of a bank balance sheet with a leverage ratio of 20. If the...
Give an example of a bank balance sheet with a leverage ratio of 20. If the value of thebank’s assets rises by 2 percent, what happens to the value of the bank’s asset’s rises by 2percent, what happens to the value of the owner’s equity in this bank? How would largedecline in the value of bank assets would it take to reduce this bank’s capital to zero?
Curtis Co. entered into a long-term contract in 2020. The contract price was $2,250,000. The following...
Curtis Co. entered into a long-term contract in 2020. The contract price was $2,250,000. The following data pertain to the first two years that the contract was in process. 2020                              2021               Costs incurred to date                                    $   570,000                  $1,557,500    Estimated costs to complete as of 12/31       1,330,000                         667,500 Billings to date                                                     650,000                     1,250,000    Cash collections to date                                     600,000                     1,150,000 1. Using the percentage-of-completion method: A. Compute gross profit to be reported in each...
XYZ Bank currently has $900 million in transaction deposits on its balance sheet. The current reserve...
XYZ Bank currently has $900 million in transaction deposits on its balance sheet. The current reserve requirement is 3 percent, but the Federal Reserve is planning on increasing it to 5 percent. XYZ Bank converts all excess reserves to loans, and the cash to deposit ratio is 4%. 1. XYZ's reserve deposit with the Fed after the reserve requirement change is _____million dollars. a) 27 b) 55 c) 35 d) none 2. What will be the XYZ's loan balance after...
A Bank has the following balance sheet (in millions) and has no off-balance-sheet activities Assets Liabilities...
A Bank has the following balance sheet (in millions) and has no off-balance-sheet activities Assets Liabilities and Equity Treasury Bills 30 Deposits 980 Long-term Treasury securities 10 Subordinated bonds 20 Residential mortgages 600 Convertible bonds 20 Commercial loans (AA+ rated) 105 Perpetual preferred stock (nonqualifying) 5 Business loans (BB+ rated) 210 Perpetual preferred stock (qualifying) 10 Commercial loans (CCC+ rated) 130 Common stock 40 Cash 20 Retained Earnings 30 Total Assets 1,105 Total liabilities and equity 1,105 What are the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT