Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Week 7
1. Suppose that you are the manager of a bank whose $100 billion of assets have an average duration of four years and whose $90 billion of liabilities have an average duration of six years. Conduct a duration analysis for the bank, and show what will happen to the net worth of the bank if interest rates rise by five percentage points. What actions could you take to reduce the bank's interest-rate risk?
2. Suppose that you are the manager of a bank that has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by five percentage points. What actions could you take to reduce the bank's interest rate risk?
3. What is disintermediation? When is disintermediation likely to occur? What factors can reduce it? If I take my funds out of my credit union and put them in a money market mutual fund, have I disintermediated? Why or why not?
4. Describe how each of the following factors contributes to financial innovation: advances in technology, changes in regulation, increased competition, increased price volatility.
Suppose that a firm produces 20000 units a year and sells them all for $10 each. The explicit costs of production are $1500000 and the implicit costs of production are $ 300000. The firm has an accounting profit of?
What is the current equilibrium level of GDP, what is the level of injections and what is the level of withdrawals?
Define the terms listed below. You should write a paragraph explaining each concept as if you were writing for your 15-year-old sibling.
What are the economic ramifications of running out of crude oil? Explain. Will the crude oil crisis come about gradually or suddenly? Explain
Consider the following two projects. both have costs of $5,000 in year 1. Project 1 provides benefits of $2,000 in each of the first four years only. The second provides benefits of $2,000 for each of years 6 to 10 only. Compute the net benefits ..
How what was learned in mass merchandising industry could be applied to the logistics challenges in some other industry - Would the logistics criteria for decision making be the same as for mass merchandising? Why or why not?
You are currently charging $1 per bag of popcorn, spending $200 in advertising, charging $1 for a soda pop, and per capita income is $12,000. a. Compute the elasticity coefficients for price, advertising, income, and cross-price. b. You are curren..
One of the stumbling blocks of Voice over IP has been the implementation of a 911 service. The given story appeared on the newswires on Tuesday:
How much are fixed costs? Draw total revenue and cost curves on the graphs here. Draw the average total cost (ATC), marginal cost (MC), and demand curves of the firm.
describe the process by which the market for capital and the market for labor reach equilibrium. what happens to each
Presume that your retirement benefits through your first year of retirement are $60,000 per year which is just enough to meet your cost of living through the first year. But, your cost of living is expected to increase at an annual rate of 5 percent ..
Assignment: Research two periods in history, one where the United States experienced an increase in inflation and the other an increase in unemployment. Write a paper discussing the causes and outcomes. Use the aggregate demand and supply mo..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd