Complete the Week Two Homework assignments listed below and submit your solutions in a single document using the link above. Be sure to use references and document your sources using proper APA style.
1. What are primary reserves, and secondary reserves and what are they supposed to do?
2. Paintbrush Hills State Bank has just submitted its Report of Condition and Report of Income to its principal supervisory agency. The bank reported net income before taxes and securities transactions of $29 million and taxes $8 million. If its total operating revenues were $650 million, its total assets $1.75 billion, and its equity capital $170 million, determine the following for Paintbrush Hills:
Tax management efficiency ratio.
Expense control efficiency ratio.
Asset management efficiency ratio.
Funds management efficiency ratio.
3. What are the principal sources of liquidity demand for a financial firm?
4. What are the principal sources from which the supply of liquidity comes?
5. What are core deposits, and why are they so important today?