Here again is the balance sheet information for Cipher Bank

Here again is the balance sheet information for Cipher Bank. It will be repeated in future questions to make things a bit easier. Note that you can, and may have to, calculate anything marked with a\"???,\" and anything not included or otherwise calculable $0. Assets Liabilities and Owner\'s Equity Buildings and furniture $900 Cash $80 Commercial paper $500 Deposit in the Fed $320 Government agency bonds $800 Home mortgages $1200 Loan to Bank A $400 Loans to firms $1100 Loans to households $1300 Municipal bonds $1400 US government bonds $600 Checking deposits $2100 Savings deposits $800 Time deposits $200 Borrowing from Bank B $500 Borrowing from the Fed $1600 Other liabilities $1000 Equity $??? Total assets $8600 Total liabilities and owner\'s equity??

Solution

net interst income = interest earned - interest expended

=> $240 - $50

=>$190.

net interest income for this bank = $190.