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Below is Dragon Bank's balance sheet (in billions): Assets Duration Liabilities Reserves & Cash ?? 0 Checking Deposit Va
Posted: Tue Apr 26, 2022 10:31 am
by answerhappygod
- Below Is Dragon Bank S Balance Sheet In Billions Assets Duration Liabilities Reserves Cash 0 Checking Deposit Va 1 (93.43 KiB) Viewed 35 times
Below is Dragon Bank's balance sheet (in billions): Assets Duration Liabilities Reserves & Cash ?? 0 Checking Deposit Variable Mortgages $10 2.0 Certificate Deposits (CDs) Commercial Loans $10 3.0 Equity Consumer Loans $7 0.7 $20 ??? $2 Duration 0.8 1.0 From past experience, you know that 10% of Consumer Loans and 50% of Checking Deposit are rate-sensitive. If the manager wants a Duration Gap of+1.03years, what amount (in billions) of Certificate Deposits should the bank have? (3 marks)