what do you think about "too big to fail"? use the case study - savings and loans debacle to illustrate. ( please read the case study from 1.3)
what are types of risks of banks? and explain each risk of banks.
what are regulations of financial institutions? why are financial institutions among the most regulated sectors in the world?
the nonperforming loan rate has been increasing for the commercial banks in the recent years in china. what do you think the reason behind? how does it link with structure change in the economy?
what relationship appears to exist between bank size, efficiency, and operating costs per unit of service produced and delivered?
the term structure of interest rates assumes that
the unbiased expectations theory of the term structure of interest rates
the liquidity premium theory of the term structure of interest rates
the market segmentation theory of the term structure of interest rates
conyers bank holds u.s. treasury bonds with a book value of $30 million. however, the u.s. treasury bonds currently are worth $28,387,500. the bank's portfolio manager wants to shorten asset maturities. which of the following statements is true?
conyers bank holds u.s. treasury bonds with a book value of $30 million. however, the u.s. treasury bonds currently are worth $28,387,500. if the portfolio manager wants to shorten the bank's asset maturity, what type of risk is she concerned about?
the discount rate that equalizes the current market value of a loan or security with the expected stream of future income payments from that loan or security is known as:
under the so-called funds management view, bank management's control over assets must be coordinated with its control over liabilities, so that asset and liability management are internally consistent.
short-term interest rates tend to rise more slowly than long-term interest rates and to fall more slowly when the long-term interest rates in the market are headed down.
a financial institution is liability sensitive, if its interest-sensitive liabilities are less than its interest-sensitive assets.
banks with a positive cumulative interest-sensitive gap will benefit if interest rates rise, but lose income if interest rates decline.
repriceable liabilities include long-term savings and retirement accounts.
duration is the weighted average maturity of a promised stream of future cash flows.
convexity is a direct measure of the price risk of a bond.
a bond with a greater duration will have a aller price change in percentage terms when interest rates change.
the __________________ shows the relationship between the time to maturity and the yield to maturity of bonds.
__________________________ is the coordinated management of both the bank's assets and its liabilities.
the __________________________ is the rate of return on a financial instrument using a 360-day year relative to the instrument's face value.
what are the principal types of loans made by banks?
what three major questions or issues must a lender consider in evaluating nearly all loan requests?