1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GuDViN [60]
2 years ago
8

A bank has the following balance sheet: SETS RETURN % MILLION $ LIABILITIES COST % MILLION $ Cash 0.00 35 Fixed-rate Deposits 3.

5 290 Securities 4.00 300 Variable-rate Deposits 2.00 260 Short-term loans 6.00 225 Fed funds 2.50 75 Long-term fixed rate Loans 6.75 250 Long-term Debt fixed rate 5.50 150 EQUITY 35 Total 810 Total 810 If the spread effect is zero and all interest rates increase 60 basis points, the bank's NII will change by ________over the year. Group of answer choices $700,000 -$1,140,000 $1,140,000 $0 -$700,000
Business
1 answer:
snow_tiger [21]2 years ago
7 0

Answer:

$1,140,000

Explanation:

Calculation to determine what the bank's NII will change by

First step is to calculate the bank's one-year repricing gap

Using this formula

Repricing gap=RSAs - RSLs

Where,

RSAs =Securities+Short-term loans

RSLs =Variable-rate Deposits+Fed funds

Let plug in the formula

($ Million)

Repricing gap=[$300 + $225] - [$260 + $75]

Repricing gap=$190

Now let calculate what the bank's NII will change by

Using this formula

Change in bank's NII=Repricing gap*Interest rates

Let plug in the formula

Change in bank's NII=$190,000,000*0.0060

Change in bank's NII =$1,140,000

Therefore If the spread effect is zero and all interest rates increase 60 basis points, the bank's NII will change by $1,140,000

You might be interested in
Cash flows: Hillman Corporation reported current assets of $3,495,055 on December 31, 2017 and current assets of $3,103,839 on D
Nuetrik [128]

Answer:

$284,115

Explanation:

Computation for the cash flow invested in net working capital at Hillman Corporation during 2017.

First step is to calculate the Net working capital for 2017

Net Working Capital 2017 = $3,495,055 - $2,867,225

Net Working Capital 2017 =$627,830

Second step is to calculate the Net Working Capital for 2016

Net Working Capital 2016 = $3,103,839 - $2,760,124

Net Working Capital 2016= $343,715

Now let calculate the cash flow invested in net working capital

2017 Cash flow invested in net working capital=$627,830-$343,715

2017 Cash flow invested in net working capital=$284,115

Therefore the cash flow invested in net working capital at Hillman Corporation during 2017 will be $284,115

4 0
3 years ago
Nina is induced by her guardian Ollie to sign a contract to invest funds in Penny Stocks Inc. through Ollie’s investment firm. U
Lina20 [59]

Answer and Explanation:

Nina's guardian Ollie is putting an undue influence on Nine to sign a contract to invest funds in Penny Stocks Inc. In this way Ollie is getting benefit while exerting pressure on Nina. Nina has the option to cancel the contract on the basis of undue influence.

6 0
3 years ago
Animated comedy show, American Family, is being broadcast in Houston. A potential advertiser wants to know how popular the show
ZanzabumX [31]

Answer:

The options are given below:

A. 4.3

B. 20

C. 23

D. 46

The answer is C. 23

Explanation:

In order to calculate this, we would need the following:

- Total number of people watching television in Houston households.

- Total number of people watch the show American Family in Houston households.

From the question above, we have:

- Number of households with televisions = 3,300,000

- Number of households watching the show= 759,000.

To calculate the rating, we have:

(759,000/3,300,000) X 100

0.23 X 100

= 23

7 0
3 years ago
Carmine Inc. is a software firm that caters to the requirements of its clients. At Carmine, work teams have access to all vital
gladu [14]

Answer:

b. employee job satisfaction

Explanation:

Based on the information provided within the question it can be said that the employee-friendly workplace culture is most likely to increase job satisfaction. This term refers to the level at which an individual is happy or content with the job that they are doing as well as what it represents to them. Therefore the information made available helps motivate the employees which increases their mood and contentedness with their job.

6 0
3 years ago
PB4.
EleoNora [17]

Answer:

Explanation:

Cost of advertising the product  - Selling & Administrative Cost

Fabric used to make the umbrellas  -Direct Materials Cost

Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame  -Manufacturing overhead Cost

Wages of workers who assemble the product  - Direct labour Cost

President's salary  - Selling & Administrative Cost

The salary of the supervisor of the people who assemble the product  - Selling & Administrative Cost

Wages of the product tester who stands in a shower to make sure the umbrellas do not leak  - Direct labour Cost

Cost of market research survey  - Selling & Administrative Cost

Salary of the company's sales managers  - Selling & Administrative Cost

Depreciation of administrative office building - Selling & Administrative Cost

4 0
2 years ago
Other questions:
  • ssume you are the Chief Information Officer (CIO)1 of the company that you dream of (any company, real or hypothetical). Give a
    12·1 answer
  • Explain why intermediate goods and services usually are not included directly in gdp. are there any circumstances under which th
    7·1 answer
  • During the _____ of the systems development life cycle (sdlc), analysts investigate a proposed solution's feasibility and determ
    15·1 answer
  • About seven percen of those who try in any one year to quit cigarettes on their actually succeed
    12·1 answer
  • Product extension and refinement:a. shorten the product life cycle. b. extend the product life cycle. c. are too costly for most
    11·1 answer
  • Which of the following requirements must be met for a redemption to be treated as substantially​ disproportionate? A. The shareh
    6·1 answer
  • You buy a put option to sell stock at $35. The price of the stock is $34 when you bought it, and the price paid for the put is $
    15·1 answer
  • A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department.
    12·1 answer
  • The firm should shut down if the market price is:___________.
    10·1 answer
  • What was the CEO of Tyco accused of doing?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!