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Question
Refer to the information below for questions 9-10:Formosa Independence Bank has the following balance sheet:
| Assets | Return | Mill $ | Liabilities and Equity | Cost | Mill $ |
| Cash | 0.00% | $ 35 | Fixed rate deposits | 3.50% | $240 |
| Investments (< 1 year) | 4.00% | $400 | Rate sensitive deposits | 2.00% | $360 |
| Short term loans (< 1 year) | 6.00% | $280 | Fed fund borrowings | 2.50% | $ 75 |
| Long term fixed rate loans (maturity > 1 year) | 6.75% | $250 | Long term borrowings at fixed rate (maturity > 1 year) | 5.50% | $119 |
| Total | $710 | Equity | $ 66 | ||
| Total | $710 |
A) $425
B) $245
C) $174
D) $140
E) $126
Answer
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Related questions
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