1. Financial Institutions and Markets Spring 2011 Dr. Andrew L. H. Parkes Quiz 13 “Bank Management” 卜安吉

2. May 12, 2011Principles of Macroeconomics, Quiz 132 Bank Management Liquidity Management Asset Management Liability Management Bank Capital Management

3. May 12, 2011Principles of Macroeconomics, Quiz 133 Bank Management What are they? Deposits are … List the four major Assets and Liabilities of any Bank/Savings or Credit Union Institution

4. May 12, 2011Principles of Macroeconomics, Quiz 134 Bank Management What are they? Deposits are … Two types of deposits Borrowing Loans Reserves – two types Bank Capital – Equity or Net Worth

5. May 12, 2011Principles of Macroeconomics, Quiz 135 Bank Management Show the balance sheet of the Third Savings Bank. The bank has $120,000 in checkable deposits, $250,000 in time deposits, is borrowing $30,000, has $45,000 in bank capital, a 12 % required reserve ratio as well as $340,000 in loans and $80,000 in securities. What is the amount of excess reserves?

6. May 12, 2011Principles of Macroeconomics, Quiz 136 Bank Management b) Now using the prior balance sheet, show what happens to this bank if there is a deposit outflow of $5,000.

7. May 12, 2011Principles of Macroeconomics, Quiz 137 Bank Management c) Now show what happens to this bank if there is an additional deposit of $8,000 is made. How much will deposits in the banking system increase by? What is the money multiplier?

8. May 12, 2011Principles of Macroeconomics, Quiz 138 Bank Management What is the correct level of ownership? More owners – more capital and larger potential assets. The more owners, the more conflicts the smaller ROE! … ? d) What is the percentage of bank capital? What is the requirement?