The smiths have decided to move to antigua. they are transferring the ownership of their $950,000 home in oakland to their daughter, renee. renee has heard about proposition 13 and is nervous about not being able to afford the increase in property taxes. does she need to worry?

a. in the state of california, transferring a principal residence of $2 million or less from a parent to a child is considered a transfer exclusion. the property will not be reappraised and the taxes increased.

b. when the property is transferred from the smiths to renee, the full cash value for tax purposes will be adjusted to the current market value of the property. this will increase the property taxes considerably.

c. in the state of california, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. the property will not be reappraised nor the taxes increased.

d. none of the above

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months.fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.