A bank has in millions 200 reserves 800 loans 400 securities

A bank has (in millions): $200 reserves, $800 loans, $400 securities, $1200 deposits, $100 debt, and $100 capital. How much is the bank\'s leverage ratio?

Leverage ratio = Liabilities / Assets
Liabilities =Deposits + Loans + Debt= 1200+800+100 = 2100
Assets = Reserves + Securities + Capital = 200+400+100 = 700
= 2100/700 = 3

$A bank has (in millions): $200 reserves, $800 loans, $400 securities, $1200 deposits, $100 debt, and $100 capital. How much is the bank\'s leverage ratio?Soluti$

A bank has in millions 200 reserves 800 loans 400 securities

Solution

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