Given the Following Information,determine the Net Income (NI )Of the Bank.The

question 10

Multiple Choice

Given the following information,determine the net income (NI ) of the bank.The loan and deposit rates are 12 percent and 3 percent,respectively.The money rate is 2 percent,and it is the benchmark of the profitability of loans and deposits.It is also the measure used to debit the lack of earning ability of cash reserves at the Federal Reserve,and it is the opportunity cost of equity capital.Other expenses are $40 million.The balance sheet information is in millions of dollars. $$\begin{array} { | l | r | l | r | } \hline \text { A ssets } & & \text { Liabilities } & \\\hline \text { Cash Reserves } & \$ 190 & \text { Deposits } & \$ 890 \\\hline \text { Loans } & 780 & \text { Equity } & 80 \\\hline \text { Total Assets } & \$ 970 & & \\\hline\end{array}$$

• A)$11.46
• B)$14.82
• C)$15.48
• D)$16.14

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Definitions:

Catharsis

A therapeutic release of emotions, often achieved through expressing feelings and discussing personal experiences.

Instrumental Aggression

Aggressive behavior that is intentional and planned, often used as a means to reach a goal.

Affective Aggression

aggression motivated by feelings of anger or hostility, often impulsive and without a rational basis.

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the intention is ambiguous or benign.