Liability management increases a bank's _________ risk and _________ risk. A. interest rate; price B. liquidity; financial C. interest rate; financial D. price; interest rate
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Liability management increases a bank's _________ risk and _________ risk.
A. interest rate; price
B. liquidity; financial
C. interest rate; financial
D. price; interest rate
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Solved in 2 steps
- (a. investment banking b. insurance firms c. commercial banking d. mutual fund e. pension fund) is a transformer of short term liabilities to long term assets. e d b c aThese are ways in which depository financial institutions measure liquidity risk except: a. Liquid assets to total assets. b. Liquid assets to long term liabilities. c. Maturity gap analysis return. d. Net liquidity statement.creditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leverage
- The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on deposits c. the average rate paid for credit d. the average annual percentage cost paid for credit Decreasing the amount of liquid assets held for the purpose of meeting loan demands and deposit withdrawals and increasing the usage of deposit and nondeposit sources of funds paying market rates of interest is known as: a. leverage adjustment b. liability management c. liquidity management d. liquidity adjustment Times interest earned is a measure of the a.gross profit compared to annual interest payments b.net earnings after taxes compared annual interest payments c.operational earnings of the firm (EBIT) compared to annual interest payments d.net earnings before taxes compared to annual interest payments A Bankers’ Acceptance is most commonly used in connection with a. financing inventories b. financing securities c. financing trust accounts d. financing foreign tradeCredit Analysis is about ..... i.Liquidity and solvency ii.Profitability iii.Risk Select one: a. ii & iii b. i & iii c. i , ii & iii d. i & iiChanges in interest rates may change the market values of the bank's assets and liabilities by different amounts is a Select one: O a. Spread Risk O b. Refinancing risk O c. Reinvestment risk Od. Price Risk
- The yield on a savings account is also referred to as Select one: of O A. liquidity. O B. compounding. zion O C. rate of return. O D. asset management. O E. insolvency.A bank's net interest margin represents the proportion of its investments that are financed with borrowed funds. Group of answer choices: True FalseHaving longer-maturity assets than liabilities causes banks to bear which of the following risks? I. Interest rate risk II. Liquidity risk III. Credit risk a. I only b. I and II only c. I and III only d. II and III only e. I, II, and III Clear my choice
- Which of the following is a Long Term Source of Finance? a. Customer Advances b. Equity Shares c. Trade Credit d. Bank CreditThe _____ ratio gives actual losses on loans, while the ______ ratio gives the extent to which the bank’s assets are devoted to loans. a. loss rate; capitalization b. loss rate; loan risk c. loan risk; loss rate d. operating efficiency; loan riskBank assets tend to have maturities and _liquidity than bank liabilities O equal; equal Olonger; greater Oshorter; greater Olonger; lower