Question
In: Finance
Describe a commercial bank's assets and liabilities.
Describe a commercial bank's assets and liabilities.
Solutions
jeff jeffy answered 4 months agoRelated Solutions
A bank's balance sheet equates the value of total assets to the sum of total liabilities...
A bank's balance sheet equates the value of total assets to the
sum of total liabilities and equity capital. (T/F)
Negotiable certificates of deposit (CDs) do not have an active
secondary market. (T/F)
In a bankruptcy situation, the Federal Reserve acts as the
liquidator of the bank. (T/F)
International expansion for financial institutions coming from
highly integrated countries maximizes the risk diversification.
(T/F)
The financial crisis of 2008, demonstrated that activities such
as trading in financial futures and interest-rate swaps...
If a bank's assets are $200 and the value of its weighted assets is $125, the...
If a bank's assets are $200 and the value of its weighted assets
is $125, the capital
requirements under the U.S. minimum equity ratio is _______, and
the Basel Accord
requirement is _______.
A) $16; $6.25
B) $10; $10
C) $16; $10
D) There is not enough information provided to answer the
question.
A structured investment vehicle (SIV) was perceived as safe
because:
A) it owned large quantities of mortgage-backed securities.
B) it was highly regulated.
C) it had strong...
A commercial bank has $100 of fixed-rate liabilities and $50 of fixed-rate assets. If the interest...
A commercial bank has $100 of fixed-rate liabilities and $50 of
fixed-rate assets. If the interest rate decreases from 10% to 5%,
the change in net profit is ( ).
a. $2.5
b. $25
c. $0
d. $-2.5
Commercial Banks can issue (as liabilities) and also invest in (as assets) different Money Market instruments....
Commercial Banks can issue (as liabilities) and
also invest in (as assets) different Money Market instruments.
a. Identify at least three of the common money
market instruments that are used by Commercial Banks. For each of
your selections, indicate whether a Commercial Bank would issue as
a liabilities or invest in as an asset.
b. What are the characteristics of these instruments
that make them useful and attractive to Commercial Banks?
1)state and explain what constitutes assets and liabilities in commercial banks and how profitability is measured.(...
1)state and explain what constitutes assets and liabilities in
commercial banks and how profitability is measured.( 8 marks)
2)explain the following term, clearly stating the impact they
have on the provision of financial services. information
asymmetry,adverse selection,moral hazard.
3) comment on the characteristics following the type of
financial intermediaries and how there services may defer from
other financial intermediaries. investment banks,insurance
companies,pension funds,credit unions.
1)state and explain what constitutes assets and liabilities in commercial banks and how profitability is measured.(...
1)state and explain what constitutes assets and liabilities in
commercial banks and how profitability is measured.( 8 marks)
2)explain the following term, clearly stating the impact they
have on the provision of financial services. information
asymmetry,adverse selection,moral hazard.
3) comment on the characteristics following the type of
financial intermediaries and how there services may defer from
other financial intermediaries. investment banks,insurance
companies,pension funds,credit unions.
Debits: a. Decrease both assets and liabilities. b. Increase assets and decrease liabilities. c. Decrease assets...
Debits:
a.
Decrease both assets and liabilities.
b.
Increase assets and decrease liabilities.
c.
Decrease assets and increase liabilities.
d.
Increase both assets and liabilities.
The bank’s assets are equal to ________ and liabilities are ________
The bank’s assets are equal to ________ and liabilities are
________
Describe the conditions when contract assets and liabilities are recognized and presented in financial statements. Find an...
Describe the conditions when contract assets and liabilities are
recognized and presented in financial statements. Find
an example of a recent 10-K or 10-Q that has contract assets or
liabilities recognized in them and share it with the class.
1). Credits a) decrease both assets and liabilities. b) decrease assets and increase liabilities. c) increase...
1). Credits
a) decrease both assets and liabilities.
b) decrease assets and increase liabilities.
c) increase both assets and liabilities.
d) increase assets and decrease liabilities.
2). The normal balance of an account is the
a) left side.
b) right side.
c) side which increases that account.
d) side that decreases that account.
3). The double-entry system requires that each transaction must
be recorded
a) in at least two different accounts.
b) in two sets of books.
c) in a...
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