Examples of off-balance-sheet activities include foreign exchange market transactions. Oborrowing from other banks. O extending loans to depositors. discount window operations.

Q: uld you simply explain & give some examples of repurchase agreements (a.k.a., “repos”) in commercial…

A: There are many types of short term instruments used by the federal bank to impart liquidity to the…

Q: Balance Sheet (all values in £) Assets Cash Deposits with other Fls Investments (OECD gov. bonds)…

A: THE LOAN ASSET LOSS PROVISION RESULTS DUE TO NON-RECOVERIBILITY OF LOAN AMOUNT. THE POLICY HAS BEEN…

Q: Which of the following is NOT a business of commercial banking?aSaving/lendingbForeign currency…

A: Commercial bank is a financial body which is responsible for accepting deposits and providing loan.…

Q: What are the advantages and disadvantages of direct lending for the bank?

A: Direct lending for banks refers to a lending strategy where banks provide loans directly to…

Q: efly explain how banks can optimize their position through managing their use of currencies?

A: Step 1   Significant restructuring of the treasury structure and the way companies interact with…

Q: Explain how commercial bank mange it balance sheet to maximize its profit without affecting the…

A: Commercial Banks are financial institutions accepting deposits from borrowers and using the deposits…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: How has the development of credit and debit cards affected firms’ currency holdings?

A: The development of Debit and Credit cards has negatively impacted currency holdings.

Q: Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire…

A: Very easy and low cost convenient way of getting loan are draft loans.

Q: a. Bank loans are classified as investment-grade and leveraged bank loans. Explain the difference…

A: (a) Bank Loan extended to corporate borrowers can be segregated into two categories viz.…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A:

Q: Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about…

A: Securitization : It is a risk management tool used to reduce an risk that is particular to some…

Q: Which of the following roles is considered a main objective of credit rating agencies? a. Granting…

A: A credit rating agency examines a debtor's ability to repay the debt by making timely principal and…

Q: Which of the following is not a function of bank management? Investment management Project…

A: Management becomes an integral part of every aspect of the business irrespective of the type of the…

Q: Which of the following bank services involves financial derivatives? Credit services O Transaction…

A: A derivative is an agreement between two or more parties in which the value is determined by an…

Q: Which of the following is a form of financing consist of short term unsecured promissory note issued…

A: A credit rating is a measurement of a person or business entity's ability to repay a financial…

Q: Risk-weighted assets increase Risk-weighted assets decrease

A: Step 1 Risk assets are calculated by adding the amount of risk to the appropriate risk weight of the…

Q: Discuss the potential market failure in the diamond model of banking regulations

A: The diamond model in banking is also known as the dual principle-agent relationship model because it…

Q: Which of the following has caused banks difficulty in estimating liquidity needs? A. competition for…

A: It is the institution that deals with financial and monetary transactions in the economy.

Q: Which among the following is not a function of a bank? a. Issuing demand drafts b. Paying interest…

A: A BANK IS A FINANCIAL INSTITUTION LICENSED TO RECEIVE DEPOSITS AND MAKE LOANS . BANK ALSO PROVIDE…

Q: Depositing money into a commercial bank is investing in a

A: Step1: Commercial banks form part of an organized money market. Commercial banks deals in money and…

Q: A bank that grants loans to firms in a many different lines of business:  will increase its…

A: When a bank grants loans to firms in different lines of business then it has to incur more expenses…

Q: Which below is not one of the factors determining the mix of banks loan? *       a. Market size…

A: Factors determining the mix of bank loan portfolio: Bank size Customer size characteristics of the…

Q: Explain the relationship between a payor bank and its customers.

A: Introduction: Payor bank can be defined as a bank which is the drawee of a draft.

Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…

A: Solution:- Reserve Requirement Ratio (RRR)  means the minimum amount of deposit a bank has to keep…

Q: Interbank borrowings are borrowings among banks are non-collateralized loans among banks are subject…

A: Every Bank is  required to hold an adequate amount of liquid assets, such as cash, to maintain its…

Q: A deposit institution can offset its liquidity risk to reduce its net deposit drains by reducing its…

A: Option A When a deposit institution faces liquidity risk, it can reduce its net deposit drains by…