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Mbank has deposit liabilities of 100 million it only keeps

Mbank has deposit liabilities of $100 million. It only keeps the minimum cash reserves required by law of 10%. Its annual costs (wages, rent, utilities, etc.) are $2.5 million.

What is Mbank's profit when it charges 7% annual interest on its loans, and pays 2% annual interest on its deposits?

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Macroeconomics: Mbank has deposit liabilities of 100 million it only keeps

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Mbank has deposit liabilities of 100 million it only keeps

Reference No:- TGS0670050

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Mbank has deposit liabilities of 100 million it only keeps

Reference No:- TGS0670050

Recent Questions Asked Macroeconomics

Q : An expenditure of 20000 is made to modifya material

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