consider a failing bank a deposit of 150 000 is worth how much if the fdic uses the 637383
1. Consider a failing bank. A deposit of $150,000 is worth how much if the FDIC uses the payoff method? The purchase and assumption method? Which is more costly to taxpayers?
2. Consider a bank with the following balance sheet:
|
Assets |
Liabilities |
||
|
Required Reserves |
$8 million |
Checkable Deposits |
$100 million |
|
Excess Reserves |
$3 million |
Bank Capital |
$6 million |
|
T bills |
$45 million |
|
|
|
Commercial Loans |
$50 million |
|
|
Calculate the bank’s risk weighted assets.