FIN350 Problems

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module_1_template.xlsx

Example

Investment Year 0 % Increase Year 1
1 $4,000,000.00 8.60% $4,344,000.00
2 $2,600,000.00 5.20% $2,735,200.00
A. Combined Value = $6,600,000.00 $7,079,200.00
B. % Increase in Value = 7.26%

Template Use: 1. Non-colored cells require data input which is given in the problem. 2. Colored cells require a calculation. All colored cells are graded. 3. Yellow colored cells involve a preliminary calculation. The result of this calculation will be used in subsequent calculations. 4. Gray colored cells are final calculations. This calculation represents the answer to the question. 5. Students must enter the formula directly into the cell for full credit.

A Final Calculation

Preliminary Calculations

Formula entered directly into cell.

For additional assistance on how to use Excel, please review the PowerPoint on Excel Basics located in the Instructor Add-Ons . For assistance on basic mathematics including percent problems, please work through the Mathematics Review document located in instructor add-ons.

Where are the instructor add-ons? Resources > Course Material > Add-Ons > Instructor Add-Ons

Click on any shaded cell to see the formula (in the formula bar) used to obtain the answer.

Matrix

Module 1 Assignment Grading Rubric
P2-1 P2-4 P2-8 P2-11 P3-1 P3-5 P3-10 P3-11
Max My Max My Max My Max My Max My Max My Max My Max My
Data Presentation 2 2 2 2 2 2 2 2
Correct Solution 1 3 3 6 6 3 6 6
Demonstration of Method 1 3 3 6 6 3 6 6
Total Points 4 0 8 0 8 0 14 0 14 0 8 0 14 0 14 0
Student Grading Data
Student Score 0
Total Possible Points 84
% Grade 0.0%
Max. Gradebook Points 60
Gradebook Score 0.0

Assignment Grading Notes: Data Presentation: Each problem must be well organized with all information being clearly identified to the reader. A person looking at the problem should be able to clearly read, understand ,and interpret the data being presented. The template has been set up to do exactly this, therefore using the template will guarantee full points for data presentation. Correct Solution: The final solution to each problem (or each part of the problem) is located in a gray shaded cell on the template. Each gray shaded cell is worth 1 point. If the answer is correct the point is awarded, if the answer is incorrect then it is not. Each yellow shaded cell on the template represents an intermediate calculation that is required to complete the problem. Each yellow shaded cell is also worth 1 point. Demonstration of Method: Every shaded cell requires a calculation to be entered in the cell which demonstrates how you obtained the value in the cell. This calculation is worth 1 point. if this calculation is omitted, you will not receive this point. This rubric will be located on the second tab on every assignment. I will complete the rubric and attach it to your grade report in the grade book. I will also attach the solutions to the assignment so that you may compare your work with the correct solutions.

P2-1

Item Amount
Currency & Traveler's Checks
Negotiable CD's
Demand Deposits
Other Checkable Deposits
Size of M1 Money Supply =

P2-4

Component Last Year Growth Rate Next Year
Currency $700,000,000,000.00 10%
Demand Deposits $300,000,000,000.00 5%
Other Checkable Deposits $300,000,000,000.00 8%
Traveler's Checks $10,000,000,000.00 0%
M1 Money Supply =

P2-8

Money Supply
M1 Money Supply
M2 Money Supply
Gross Domestic Product
Real Output
A. M1 Velocity
B. M2 Velocity
C. Average Price for Real Output

P2-11

One Product Economy - PC's
This Year Next Year
Real Output
Nominal GDP
Money Supply
Velocity na
A. Average Selling Price
B. Average selling Price
% Change in Price level
C. GDP with No Inflation
Money Supply with no Inflation
% Increase in Money Supply
D. Velocity
Money Supply with no Inflation
% Increase in Money Supply

P3-1

A. Loan Amount of Loan Discount Rate Interest Net Proceeds
Loan A
Loan B
Loan C
The loan that provides the most upfront money is loan
B. Loan Effective Cost
Loan A
Loan B
Loan C
The loan with the lowest cost is loan

P3-5

Accounts Amount
Vault Cash
U.S. Government Securities
Demand Deposits
Non-transactional Accounts
Cash in Process of Collection Total Assets
Loans to Individuals Total Liabilities
Loans Secured by Real Estate Owners Capital
Federal Funds Purchased
Bank Premises

P3-10

Asset Amount Weight Risk-Adjusted Assets
Cash
Government Securities
Mortgage Loans
Other Loans
Fixed Assets
Intangible Assets
Total Assets
Loan-loss Reserves
Owners Equity
Trust-preferred Securities
A. Equity capital Ratio
B. Tier 1 Ratio
C. Total Capital Ratio

P3-11

Accounts Amount Weight Risk-Adjusted Assets
Cash Assets
Loans Secured By Real Estate
Commercial Loans
Government Securities Owned
Goodwill
Bank Fixed Assets
Total Assets
Demand Deposits
Time and Savings Deposits
Federal Funds Purchased
Trust Preferred Securities
Owners Capital
Loan Loss Reserves
A. Equity Capital Ratio
C. Tier 1 Ratio
D. Total Capital Ratio
How could the bank increase its equity capital ratio?
What actions could the bank management team take to improve the bank's Tier 1
and Total Capital ratios?

Answer:

Answer: