Securitization changes the systemic (system-wide) risksin the regulated and unregulated “shadow” banking system. What is securitization? Does it pose a problem foreffective banking systems?

Q: The following is true of deposit insurance, except     Depositor no longer has incentives to…

A: Deposit insurance is used to refer to the guarantee provided to protect the savings of the…

Q: What are the possible arguments for setting up a firewall between investment banks and commercial…

A: At the time, improper banking activity–the overzealous commercial bank involvement in stock market…

Q: balance-sheet mismatch that financial intermediaries

A: Financial intermediaries as the name suggest are the middlemen between two parties engaged in a…

Q: Which is NOT a source of fraud risk (from the Fraud Triangle)?  a) Fraud Tip Hotline b) Perceived…

A: According to the Fraud Triangle, all three elements - opportunity, motivation or pressure, and…

Q: Which of the following is not a reason for banks to be regulated? a.To protect depositors. b.To…

A: A bank is a type of financial institution that handles all procedures linked to depositing and…

Q: Explain Poor supervision by Central Banks with examples

A: Central banks play major role in the country’s economy. Some of the main function of these banks are…

Q: How can bankers be spotting potential fraud among the loan granted

A: Bank loan means the loan given by the bank to the borrower. This loan can be provided for short term…

Q: Which of the following is not a purpose of internal controls?     Guarantee profits     Protect…

A: Internal control can be defined as a system to follow the rules and mechanism in the organisation so…

Q: Moral hazard caused by Deposit Insurance Schemes refers to: Question 2Answer a. The placing of…

A: The objective of the question is to understand the concept of 'Moral Hazard' in the context of…

Q: 13. Explain the primary risks that commercial banks manage?

A: Since the banks are involved in many risky investments and transactions, they face many risks. A few…

Q: Answer the following questions to ponder: 1. What is the purpose of internal controls? 2. What…

A: An internal control is a plan of organisation for your business. It co-ordinates all systems used in…

Q: The concept of too big to fail creates a problem for? a. Bank manager b. Regulators c. Bank managers…

A: Too big to fail: It characterizes a company or trade division considered to be so profoundly…

Q: Could efforts to avoid conflicts of interest lead an investment bank to provide poor service to a…

A: An investment is a financial institution that provides services to the company. Mainly, the clients…

Q: Which one of the following statements is true of E-commerce? a.It  involves the exchange of an…

A: E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the…

Q: If bad credit risks are the ones who most actively seek loans and, therefore, receive them from…

A: In this scenario, bad credit risks actively seeking loans create a situation where the lender…

Q: Select all that are true regarding liquidity risk for a bank. O Consumer trust in the bank ensures a…

A: The answer is provided below.

Q: Match the correct type of bank risk with the appropriate associated statement. 1.The possibility…

A: Risk is referred as the possibility of the something bad happened. It also involves in an…

Q: Which of the following statements is/are true? Multiple statements may be true A bank borrowing from…

A: Yes, the statement "A bank borrowing from the central bank signals confidence to other market…

Q: Which of the following is NOT an advantage of depositing funds into a bank account (compared to…

A: Depositing funds with the banks is considered the safest investment and due to less risk it fetches…

Q: Financial intermedires play a crucial role in an economic crisis they are responbile for both…

A: Financial intermediaries are the middle person between the financial market and the investors. They…