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Debora [2.8K]
3 years ago
11

Bank's Balance Sheet

Business
1 answer:
avanturin [10]3 years ago
4 0

Answer:

1. increase securities , increase owners equity

2. Leverage ratio is 5.2

3. A. The return on each asset

Explanation:

1. If the bank owner decide to imcrease assets by buying new securities through additional funds from them, then securities assets increases by $200 and owners equity increases by $ 200 to balance the balance sheet

2. Leverage ratio= total assets divided by owners equity

= 1950/375= 5.2 ( owners equity increases by $200 to make $375)

3. Banks consider return on assets to allocate asset resources because they weigh risk and return and allocate to resources on the basis of greatest optimal risk return combination

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