User Account

All Pages

How each of the following potentially affects a bank

Assignment Help Financial Management
Reference no: EM13885776

Explain how each of the following potentially affects a bank's liquidity risk:

a. Most (95 percent) of the bank's securities holdings are classified as held- to-maturity. b. The bank's core deposit base is a low (35 percent) fraction of total assets.

c. The bank's securities all mature after eight years.

d. The bank has no pledged securities out of the $ 10 million in securities it owns.

Reference no: EM13885776

Questions Cloud

Why the bank should authorize and make the dividend payment : Suppose that your bank had reported a substantial loss during the past year. You are meeting with the bank's board of directors to discuss whether the bank should make its traditional (25 years straight) dividend payment to common stockholders. Provi..
What should the care team at the emergency room do : John, a 32 year-old lawyer, had worried for several years about developing Huntington's chorea, a neurological disorder that appears in a person's 30s or 40s, bringing rapid uncontrollable twitching and contractions and progressive, irreversible d..
Show average electric field over surface of sphere is zero : If the point charge q is instead located outside the sphere, a distance r from the center, show that the average electric field over the surface of the sphere has magnitude q/4πE0r.
What is the primary competitive forces impacting u.s. steel : What is the primary competitive forces impacting U.S. steel producers?
How each of the following potentially affects a bank : Explain how each of the following potentially affects a bank's liquidity risk: a. Most (95 percent) of the bank's securities holdings are classified as held- to-maturity. b. The bank's core deposit base is a low (35 percent) fraction of total assets...
What are analogous statements for lower-dimensional analogs : A sphere has radius R1 and uniform volume charge density ρ. A spherical cavity with radius R2 is carved out at an arbitrary loca- tion inside the larger sphere. Show that the electric field inside the cavity is uniform (in both magnitude and dir..
Importance of beginning the master budget process : Discuss the importance of beginning the master budget process with an accurate sales budget and what are some important factors that a manager should consider when developing a sales budget?
What does a banks efficiency ratio measure : Depository institutions typically differentiate between interest and noninterest income and expense. What are the primary components of each? Define net interest income (NIM) and burden. What does a bank's efficiency ratio measure?
What are the ethical principles behind this point of view : For example, if your classmate responded that Dr. Kevorkian was a hero, respond to their post by explaining the reasoning behind the view that he was a murderer and what that would mean for him. What are the ethical principles behind this point o..

Reviews

Write a Review

Financial Management Questions & Answers

  Will the actual realized yields be equal to expected yields

World, Inc. has bonds outstanding with 7 years left to maturity. The bonds have a 6% annual coupon rate and were issued a year ago at their par value of $1,000. What is the yield to maturity? Will the actual realized yields be equal to the expected y..

  Evaluating a project for a small manufacturing firm

You are evaluating a project for a small manufacturing firm. The firm has provided the following information: the initial cost of the project is $2,500 for equipment purchase; the CCA rate is 10 percent; tax rate is 25 percent; and the pre-tax cash f..

  Order to improve their ability to save for life stages

People use TVM for future financial planning in order to improve their ability to save for life stages and purchases. TVM is a part of our daily life. Let’s assume we have $ 1000 to invest with 6% interest rate and we like to double our money. How lo..

  Required return that exceeds its rate of return

Which one of the following indicates a project has a required return that exceeds its rate of return?

  Risk and return risk and return coefficient of

risk and return coefficient of variation ltbrgtbased on the following information calculate the coefficient of

  A high current ratio suggests that the firm

A high current ratio suggests that the firm:

  New basel iii minimum capital requirements are excessive

Some analysts believe that the new Basel III minimum capital requirements are excessive and will reduce bank profitability, ceteris paribus. Summarize these arguments.

  Balance of the savings account as down payment

An investor wants to save for five years for a down payment on a house. She deposits $200 per month into a savings account paying 7% compounded monthly. At the end of the five years, she places the balance of the savings account as a down payment on ..

  Maturity risk premium on both treasury and corporate bonds

Inflation is expected to increase steadily over the next 10 years, there is a negative maturity risk premium on both Treasury and corporate bonds, and the real risk-free rate of interest is expected to remain constant. Which of the following statemen..

  An insurance line has a pure loss ratio-operating ratio

An insurance line has a pure loss ratio of 65%, an expense ratio of 26%, the firm pays 3% of premium to policy holders as dividends, and has an investment yield to premium ratio of 6%. What is the operating ratio?

  Expansion project-requires an initial fixed asset investment

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Loan amortization and ear-what will be monthly loan payment

You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly. What will be the monthly loan payment?

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