Use the Following Information for Questions -What Is 1^st State's Return on Equity?
A) 0

question 78

Multiple Choice

Use the following information for questions .
1 st State Bank Balance Sheet Assets
$\begin{array}{lrr}\text { Cash and Due from Banks } & \$ & 50 \\\text { Investments } & \$ & 300 \\\text { Federal Funds } & \$ & 10 \\\text { Loans } & \$ & 350 \\\text { Premises } & \$ & 90\\\text { Average Total Assets }&\$&800\\\\\text { Liabilities \& Equity }\\\text { Demand Deposits } & \$ & 100 \\\text { Time Deposits } & \$ & 300 \\\text { Federal Funds } & \$ & 300 \\\text { Equity } & \$ & 100\\\text { Average Total Liabilities \& Equity }&\$&800\\\\\text { Income Statement }\\\text { Interest Income } & \$ & 100 \\\text { Interest Expense } & \$ & 75 \\\text { Non-Interest Income } & \$ & 5 \\\text { Non-Interest Expense } & \$ & 25\\\text { Net Income }&\$&5\end{array}$
-What is 1^st State's return on equity?

• A) 0.6%
• B) 3.8%
• C) 5.0%
• D) 8.2%
• E) 9.8%

---

Definitions:

Circuit Protection

Devices such as fuses, fuse links, and circuit breakers in an electrical circuit that stop the flow of electricity in the event that a fault occurs in the circuit. These help to protect people from injury and prevent damage to the vehicle’s electrical system.

Fuse Links

Safety devices in electrical systems that melt and break the circuit when current exceeds a certain level, preventing overheating.

Relays

Electrically operated switches that open or close circuits when activated, used in various applications to control high power or high voltage devices with low power signals.

Series Circuits

Electrical circuits in which components are arranged in a sequence such that the current flows through each component one after the other.