entral Bank of Oman on behalf of the Oman Government raised OMR 13 million by way of treasury bills on 16th September 2020. Which of the following is not true about Treasury Bills
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- A. On December 2020, Al NASR Islamic bank buys a government bond worth $1000mln by issuing new money. KSA government (seller of the Bond) deposited the proceeds with AL HILAL bank noting that reserve - requirement ratio is equal to 10 percent of deposits. What is the engine of the process of money creation? Explain its relationship with the reserve requirement ratio. Calculate and explain the balance sheet of the banking system.Suppose the Bangladesh Bank purchases a government bond from you for TK 10,000. a. Suppose you deposit the TK 10,000 in First Security Bank. Show this transaction on First Security Bank's T-account. 02 b. Suppose the reserve requirement is 20 percent. Show First Security Bank's T-account if they loan out as much as they can. 02 c. At this point, how much money has been created from the Bangladesh Bank’s policy action?A bank is short of cash to meet Bank of Ghana reserve requirement overnight and it is therefore selling treasury bills of face value of GHS250 million to a discount house at a price of GHS249.82 million. The bank agrees to repurchase the T. Bills back at GHS250 million the next day. Calculate the repurchase (REPO) rate p.a. on the transaction.
- K The U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. On June 4, 2003, Kris Greenhalgh purchased a 155-day, $4500 U.S. Treasury bill at a 4.34% discount. On the date of maturity Kris received $4500. Complete parts a) through d). Click here for an explanation of treasury bills. Click the icon to view the table of maturity dates. a) What is the date of maturity of the Treasury bill? The date of maturity of the Treasury bill is 2003The Central bank of Oman issued treasury bills with 180 days maturity and at a discount rate of 6 percent. Calculate the present value or the market price of the treasury bill assuming the face value(FV) to be 100. Select one: a. 96.60 b. None of these c. 97.04 d. 95.40Use the information provided below to prepare the Debtors Collection Schedule for January and February 2023:INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 - R576 000 January 2023 - R540 000 February 2023 - R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 - R1 000 000 January 2023 - R800 000 February 2023 - R920 000
- Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR = 4.23% and ϕ = 3.16%. b. Charges a 0.33 percent loan origination fee to the borrower. c. Imposes a 9 percent compensating balance requirement to be held as noninterest-bearing demand deposits. d. Holds reserve requirements of 8 percent imposed by the Federal Reserve on the bank’s demand deposits. Calculate the bank’s ROA on this loan.A bank charges 10% bank discount on short-term loans. Find the maturity value of the non-interest bearing note given by the bank, if the borrower receives Php 3,000 from July 5 to September 19, 2012. Select the correct response: Php 3,305.32 Php 3,490.89 Php 1,616.28 Php 3,064.70World Bank loaned P9,000,000 to a Problem 7-13 (IAA) borrower on January 1, December 31, 2021. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2022. The bank has Amount projected on December 31, 2022 1,500,000 2,000,000 2,500,000 3,000,000 accrued the interest on December 31, 2022. Date of cash flow December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 The present value of 1 at 12% is .89 for one period, .80 for two periods, .71 for three periods, and .64 for four periods. 1. What amount should be reported as loan impairment loss for 2022? a. 2,370,000 b. 3,450,000 c. 6,630,000 d. 2,450,000 2. What amount should be reported as interest income for 2023? 795,600 b. a. 900,000 180,000 d. C. 0. 3. What is the carrying amount of the loan receivable on December 31, 2023? a. 5,925,600 b. 4,845,600 c. 6,330,000 d. 7,500,000
- GBA Company wishes to raise $5,000,000 with debt financing. The funds will be repaid with interest in 1 year. The treasurer of GBA Company is considering three sources: i. Borrow USD from Citibank at 1.50% ii. Borrow EUR from Deutsche Bank at 3.00% iii. Borrow GBP from Barclays at 4.00% If the company borrows in euros or British pounds, it will not cover the foreign exchange risk; that is, it will change foreign currency for dollars at today’s spot rate and buy foreign currency back 1 year later at the spot rate prevailing then. The GBA Company has no operations in Europe. A representative of GBA contacts a local academic to provide projections of the spot rates 1 year in the future. The academic comes up with the following table: Currency Spot Rate Projected Rate 1 Year in the Future USD/GBP 1.5 1.55 USD/EUR 0.95 0.85 What are the projected USD/GBP rate and USD/EUR rate for which the expected interest costs would be the same for the three…GBA Company wishes to raise $5,000,000 with debt financing. The funds will be repaid with interest in 1 year. The treasurer of GBA Company is considering three sources: i. Borrow USD from Citibank at 1.50% ii. Borrow EUR from Deutsche Bank at 3.00% iii. Borrow GBP from Barclays at 4.00% If the company borrows in euros or British pounds, it will not cover the foreign exchange risk; that is, it will change foreign currency for dollars at today’s spot rate and buy foreign currency back 1 year later at the spot rate prevailing then. The GBA Company has no operations in Europe. A representative of GBA contacts a local academic to provide projections of the spot rates 1 year in the future. The academic comes up with the following table: Currency Spot Rate Projected Rate 1 Year in the Future USD/GBP 1.5 1.55 USD/EUR 0.95 0.85 What is the expected interest rate cost for the loans in EUR and GBP?The Central bank of Oman issued treasury bills with 180 days maturity and at a discount rate of 6 percent. Calculate the present value or the market price of the treasury bill assuming the face value(FV) to be 100. ( assume 1 year = 365)Select one: a. 96.60 b. None of these c. 97.04 d. 95.40