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Question
Castle State Bank has the following financial information.
| Balance Sheet | Income Statement | ||
| Cash | $100 | Interest Income | $400 |
| Securities Investments | $600 | Interest Expenses | ($150) |
| Net Loans | $1200 | Non-Interest Income | $50 |
| Net Premises and Equip. | $300 | Non-Interest Expenses | ($100) |
| Total Assets | $2200 | Provision for Loan Losses | ($60) |
| Deposits | $1100 | Pre Tax Net Operating Income | $140 |
| Non-Deposit Borrowings * | $800 | Securities Gains (Losses) | ($40) |
| Equity Capital | $300 | Taxes | ($45) |
| Total Liabilities and Equity | $2200 | Net Income | $55 |
| * All Purchased Funds |
Use this information to calculate Castle State Banks equity multiplier
A) 20.45 times
B) 18.33 times
C) 12.22 times
D) 7.33 times
E) 2.5 times
Answer
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Related questions
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A) Money the bank has borrowed from the money market
B) Cash in the vault
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Harrison Bank has the following financial information. ROE
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$62,500 Total Equity
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Net Profit Margin
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$62,500 Total Equity
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Castle State Bank has the following financial information. Balance Sheet Income Statement Cash
$100
Interest Income
$400 Securities Investments
$600
Interest Expenses
($150) Net Loans
$1200
Non-Interest Income
$50 Net Premises and Equip.
$300
Non-Interest Expenses
($100) Total Assets
$2200
Provision for Loan Losses
($60) Deposits
$1100
Pre Tax Net Operating Income
$140 Non-Deposit Borrowings *
$800
Securities Gains (Losses)
($40) Equity Capital
$300
Taxes
($45) Total Liabilities and Equity
$2200
Net Income
$55 * All Purchased Funds Use this information to calculate Castle State Banks asset utilization ratio
A) 20.45%
B) 18.33%
C) 12.22%
D) 7.33%
E) 2.5%
Q:
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$100
Interest Income
$400 Securities Investments
$600
Interest Expenses
($150) Net Loans
$1200
Non-Interest Income
$50 Net Premises and Equip.
$300
Non-Interest Expenses
($100) Total Assets
$2200
Provision for Loan Losses
($60) Deposits
$1100
Pre Tax Net Operating Income
$140 Non-Deposit Borrowings *
$800
Securities Gains (Losses)
($40) Equity Capital
$300
Taxes
($45) Total Liabilities and Equity
$2200
Net Income
$55 * All Purchased Funds Use this information to calculate Castle State Banks net profit margin
A) 20.45%
B) 18.33%
C) 12.22%
D) 7.33%
E) 2.5%
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C) Embezzlement of funds of a bank by a teller of the bank
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OE for a bank reflects:
A) How well the assets of the bank are managed
B) The bank's use of leverage
C) How well the bank controls expenses
D) All of the above
E) None of the above
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B) Interest-rate risk
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D) Credit risk
E) Liquidity risk
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Possible breakdowns in quality control, inefficiencies in producing and delivering financial services, weather damage, aging or faulty computer systems and simple errors in judgment by bank management illustrate what form of risk faced by banks?
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B) Liquidity risk
C) Interest-rate risk
D) Operational risk
E) None of the above
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B) Asset utilization.
C) Equity multiplier.
D) Earnings retention ratio.
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is long-term debt capital whose claims legally follow claims of depositors.
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represents funds set aside for contingencies such as legal action against the institution as well as providing a reserve for dividends expected to be paid but not yet declared and a sinking fund to retire stock or debt in the future.