. A bank has the following: high-quality liquid assets (HQLA) worth $62 million . Non liquid assets of $15 mln . • • • Stable deposits of $20 min Wholesale Short term deposits of $10 mln $ 50 mln in anticipated net cash flows over a 60 day stress period $39 million in anticipated net cash flows, over a 30-day stress period: Calculate the Liquidity Coverage Ratio O 210% O 124% O 164% O 159%
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- ← Assets Reserves $ Securities Loans Your bank has the following balance sheet:< 50 million 50 million 150 million Liabilities Checkable deposits $200 million H Bank capital 50 million If the required reserve ratio is 10%, what actions should the bank manager take if there is an unexpected deposit outflow of $60 million?<A bank has $400 million in demand deposits and desires a 20 percent reserve ratio. How much will it hold as reserves? O a. $200 million O b. $120 million O c. $80 million O d. $500 millionCalculate the amount of liquidity a bank can generate from selling its AFS portfolio using the following information:USTs held in AFS = $92,053,000Securities held in HTM = $13,500,000Loans = $69,680,000Settlement occurs on T+2Maturing on T+1 = $16,000,000Haircut = 5%USTs in AFS used as collateral for RP liabilities (i.e./ "encumbered") = $19,740,000 $56,313,000 $53,497,350 $52,697,350 $51,710,350
- Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 800 7.0% 500 3.0% Fixed rate $ 400 9.0% 300 5.0% Non earning $ 200 200 $ 1,000 Equity 400 Total $ 1,400 $ 1,400 What is the Net Interest Margin (NIM) Select one: O a. 4.5% O b. 6.2% O c. 5.17% O d. 7.12% %24 %24 %242. Assume that a particular bank has excess reserves of Php800,000 and checkable deposits of Php1,500,000. If the reserve ratio is 20%, what is the size of the bank's actual reserves?Consider the following timeline detailing a stream of cash flows: Date 0 2 3 5 $100 $200 $300 $400 $500 ? Cash flow If the current market rate of interest is 10%, then the future value (FV) of this stream of cash flows is closest to: OA. $1500 OB. $1,887 OC. $3,019 OD. $2,264 D
- Consider the following timeline detailing a stream of cash flows: Date Cash Flow $1,000 $2,000 O $6,326.40 $ 7,136.73 O $5,022.10 O $5,423.87 0 O $ 6,832.51 1 If the current market rate of interest is 8% per year, then the future value (FV) of this stream of cash flows in year 3 is closest to O $ 6,000.00 2 $3,000 3 FV=?Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial, increase in excess reserves of $100,000, the money supplyPLC estimate a cash of $2 500 000 over the next five months. This amount is available to the firm in the form of marketable securities. It can earn 10% annual yield on its marketable securities. Conversion of marketable securities into cash entails a fixed cost of $750 per transaction.Determine:i. Optimum cash balance ii. Average cash holding iii. Number of transactions iv. Average number of days per transaction (assume 30 days per month) v. Total cost of holding cash balance vi. Per day usage of cash
- · Given the following cash flows, determine the equivalent uniform cash flow at 9% interest. Draw the cash- flow diagram before solving. Year 1 2 3 4 5 Payment $200 300 400 500 600) For each of the following, determine the expected cash flows. Cash FlowEstimate ProbabilityAssessment a. $ 4,800 20% 6,300 50% 7,500 30% b. $ 5,400 30% 7,200 50% 8,400 20% c. $(1,000) 10% 3,000 80% 5,000 10%Hardrock Hardware PLC estimate a cash of $2 500 000 over the next five months. This amount is available to the firm in the form of marketable securities. It can earn 10% annual yield on its marketable securities. Conversion of marketable securities into cash entails a fixed cost of $750 per transaction.Determine:i. Optimum cash balance ii. Average cash holding iii. Number of transactions iv. Average number of days per transaction (assume 30 days per month) v. Total cost of holding cash balancevi. Per day usage of cash