User Account

All Pages

Calculate the liquidity index for infinity bank

Assignment Help Accounting Basics
Reference no: EM132764945

Assignment: Liquidity And Liability Management

Infinity Bank has the following assets in its portfolio: $40 million in cash reserves with the Reserve Bank, $40 million in Treasury notes, and $60 million in mortgage loans. If the assets need to be liquidated at short notice, Infinity will receive only 99 per cent of the fair market value of the Treasury notes and 90 per cent of the fair market value of the mortgage loans.

(i) Calculate the liquidity index for Infinity Bank.

(ii) Based on this index, is Infinity Bank highly liquid?

(iii) Is the liquidity index a comprehensive measure of a bank's overall access to liquidity? Why or why not?

Reference no: EM132764945

Questions Cloud

Was the training delivery model effective in learning ksa : Was the training delivery model effective in learning the KSA? Please give an explanation of why it was or was not. How do you think the training delivery model
Determine the adjusted aggregate investment income for rehan : Determine the adjusted aggregate investment income for Rehan. Will this have any effect on the small business deduction calculation in 2020?
Calculate the refundable portion of part i tax : Calculate the refundable portion of Part I tax, the balance in NERDTOH, the balance in ERDTOH, and the eligible, non-eligible, and total dividend refund
How asic monitors and administers compliance : Reflect on this statement and explain the role of the Australian Securities and Investments Commission (ASIC) in achieving the objectives of corporate.
Calculate the liquidity index for infinity bank : Infinity Bank has the following assets in its portfolio: $40 million in cash reserves with the Reserve Bank, $40 million in Treasury notes, and $60 million.
Advantages of using quantitative risk assessment tool : Discuss the advantages of using quantitative risk assessment tool.
Identify the generally accepted accounting concept principle : Identify the generally accepted accounting concept principle, which expects to discontinue operations next month, records an equipment purchase
Compute the profit per customer for the retail customer : Compute the profit (loss) per customer for the retail customer and business customer first using original cost system then using the ABC System.
Is the valid argument for financial statements of abc ltd : Is this valid argument? The financial statements of ABC Ltd indicate that the directors did not depreciate their buildings on the basis

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd