39. Use Table 11. Below is the balance sheet for Tribank. The required reserve r

Question

39. Use Table 11. Below is the balance sheet for Tribank. The required reserve ratio is 8.00%, Deposits fall by S8. Is the bank deficient or have excess reserves and by how mach? Table 11 Assets Liabilitios Reserves Loans Tr 105 15 50 45 Securities A. Deficient by-$15.40 B. Deficient by -$0.76 Excess of $7.24 D. Excess of $8.00 40. Use Table 12. Suppose there is a deposit outflow of $12. The reserve requirement is 9.00%. To meet the shortfall the bank sells loans for $0.73 cents on the dollar. How many loans are required to sell? Table 12 Assets 100 al 84 10 Loans reasury Securities B. $4.92 C. $8.22 D. $4.11 For questions 41 and 42 use the table below. The carried interest percent is 20%. The committed capital amount is $100. The management fee percent is 2.00% Table 13 NAV after Operating NAV before Caried Paid in t Fees Results Distributions Interest Distributions Distributions 41, what is the carried interest in 2016? A. S0.58 B. S9.91 C.$13.08 D. S14.20 Page 10 of 12

Explanation / Answer

Solution 39

We can use following formula to calculate the amount of excess reserves or deficiency:

Excess or deficiency = Reserves – Deposits x Reserve ratio

                                        = $15 - ($105 -$8) x 0.08

                                        = $15 - $7.76

                                        = $7.24

Therefore, option C is correct.

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