Business, 28.01.2020 16:50, Serenitybella

1) banks hold excess and secondary reserves to
a) reduce the interest-rate risk problem.
b. provide for deposit outflows.
c. satisfy margin requirements.
d. achieve higher earnings than they can with loans.

2) which of the following statements most accurately describes the task of bank asset management?
a. banks seek the highest returns possible subject to minimizing risk and making adequate provisions for liquidity.
b. banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
c. banks seek to prevent bank failure at all cost; since

1) banks hold excess and secondary reserves to
a) reduce the interest-rate risk problem.
b. provide for deposit outflows.
c. satisfy margin requirements.
d. achieve higher earnings than they can with loans.

2) which of the following statements most accurately describes the task of bank asset management?
a. banks seek the highest returns possible subject to minimizing risk and making adequate provisions for liquidity.
b. banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
c. banks seek to prevent bank failure at all cost; since a failed bank earns no profit, liquidity needs supersede the desire for profits.
d. banks seek to acquire funds in the least costly way.

3) the goals of bank asset management include
a) maximizing risk.
b. minimizing liquidity.
c. lending at high interest rates regardless of risk.
d. purchasing securities with high returns and low risk.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:00, swelch2010

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u. s. company and i don’t make decisions based on what’s good for the u. s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Answers: 2

continue

Business, 22.06.2019 06:00, aliami0306oyaj0n

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

Answers: 3

continue

Business, 22.06.2019 11:30, zahradawkins2007

Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task

Answers: 1

continue

Business, 22.06.2019 13:40, LilFabeOMM5889

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Answers: 1

continue

Do you know the correct answer?

1) banks hold excess and secondary reserves to
a) reduce the interest-rate risk problem.
...