User Account

All Pages

Can the same argument be made for passbook savings accounts

Assignment Help Macroeconomics
Reference no: EM13317502

What are the reasons for not including demand deposits as rate-sensitive liabilities in the repricing analysis for a commercial bank? What is the subtle but potentially strong reason for including demand deposits in the total of rate sensitive liabilities? Can the same argument be made for passbook savings accounts?

Reference no: EM13317502

Questions Cloud

Does consumer bank face interest rate risk : Does Consumer Bank face interest rate risk? That is, if market interest rates increase or decrease 1 percent, what happens to the value of the equity? How can a decrease in interest rates create interest rate risk?
To have some success in immunizing the balance sheet : What is a maturity gap? How can the maturity model be used to immunize an FI"s portfolio? What is the critical requirement that allows maturity matching? to have some success in immunizing the balance sheet of an FI?
Decide to award additional bonus based on bonus contribute : The additional bonus rates (i.e. the values ofx,yandz) will be determined by the board of directors of ABC.
Rate mortgages with repricing every six months : Which of the following assets or liabilities fit the one-year rate or repricing sensitivity test?
Can the same argument be made for passbook savings accounts : What are the reasons for not including demand deposits as rate-sensitive liabilities in the repricing analysis for a commercial bank? What is the subtle but potentially strong reason for including demand deposits in the total of rate sensitive liabil..
Moores on the signification of walls : What's that value? Share with the class 1) your experience with walls, 2) what expressions do you know that have to do with walls, 3) how can we put together (relate) Moore's article with that of Abbott?
Calculate the repricing gap and the impact on net interest : Calculate the repricing gap and the impact on net interest income of a 1percent increase in interest rates for each position.
What if the manager believed rates would fall in the next : If a bank manager was quite certain that interest rates were going to rise within the next six months, how should the bank manager adjust the bank"s six-month repricing gap to take advantage of this anticipated rise?
What is the relation between changes in interest rates : What is the CGAP effect? According to the CGAP effect, what is the relation between changes in interest rates and changes in net interest income when CGAP is positive? When CGAP is negative?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrate what are the mistakes made

Illustrate what are the mistakes made by investors in dealing with foreign exchange investments? Provide examples.

  What is the absence of price regulation by the government

After a given time period, due to investment and technological advances, which cost the monopolist an increase in TFC, results in a cost of production decrease to ATC2 and its corresponding supply to MC2.

  Describe the introduction of index funds

Index funds were also first offered during the 1980s. These funds allowed investors to become cheaply diversified from idiosyncratic risks faced by individual companies while still allowing them to capture the returns from the broad stock market.

  What would be the quantity of surplus demand

There be surplus supply or surplus demand. What would be the quantity of surplus demand or surplus demand.

  What are the relevant markets in the model

an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one..

  Explain causes for the downward tailspin of the economy

The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy.

  What were main benefits fromt activities of goldsmith banker

An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held

  Identify the central reason they reach such strikingly

different end points in their vision about the economy-Smith claims we end, as Heilbroner puts it, in "Vahalla" while Ricardo claims we end a relatively dismal steady state. In your thought paper, explore why they reach these strikingly different ..

  Which nation has the absolute advantage in the production

Which nation has the absolute advantage in the production of tanks. Why is it this country.

  Why did the oil market go into turmoil as a result

The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil[leading to] the lowest price for domestic crude oil since June 1990." a. Why were the members of OPEC..

  What is the net outcome of either tariffs or quotas

What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government?

  Explain how might these regulations be thought

Explain how might these regulations be thought of as being a negative technological change.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd