Explain the importance of liquidity management

Assignment Help Business Economics
Reference no: EM13977117

1. The profitability of a bank depends on several different factors.

a. Why is “Gap Analysis” so important to a bank? 

b. What should a bank do if inflation increases?   Explain with examples.

c. What should a bank do if inflation decreases? Explain with examples.

2. Banks manage their assets in a variety of ways.

a. Explain the importance of “liquidity management”? 

b. What is the concern of the bank in regard to the liquidity of its assets?  

c. What can banks do to management liquidity risk?

3. Bank Management is becoming increasingly complicated.

a. What are the Four Major concerns of bank managers in ensuring the profitability of their operations?

b. Explain three with examples.

c. Which one do you believe is most important? Explain with examples.

4. The management of bank risk is a crucial function of management.

a. What are the most important risk management principles that involve approving loans?

b. Why do Adverse Selection and Moral Hazards make the underwriting process more complicated.

c. Is the loan approval process different in Western/International banks in comparison to Islamic banks? Explain with examples.

Reference no: EM13977117

Questions Cloud

What is the reading on each of the scales : A 54kg woman stands on a very light, rigid board that rests on a bathroom scale at each end, as shown in figure,  What is the reading on each of the scales? On the left scale Express your answer using two significant figures. in kg
How much is consumer surplus : Suppose demand for a good is QD = 50 - P and supply is QS = -10 + P. How much is the producer surplus? How much is consumer surplus?
A recent study determined the elasticities : A recent study determined the following elasticities for Volkswagen Beetles:
Improve her overall level of utility : For each of the following situations, decide whether the bundle Lakshani is considering optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility? That is, determine which good she should spend more on and which go..
Explain the importance of liquidity management : The profitability of a bank depends on several different factors. Banks manage their assets in a variety of ways. Explain the importance of “liquidity management”?  What is the concern of the bank in regard to the liquidity of its assets? Bank Manage..
Describe the cyclic activated-sludge system : Describe the Cyclic Activated-Sludge System, discuss its mode of operation and the potential benefits as an equipment option for an activated sludge unit to be designed into a batch wastewater pretreatment system.
What is the minimum force necessary to make the object slide : A 6 kg object sits on a horizontal surface with coefficient of friction = .8. What is the minimum force (not necessarily horizontal) necessary to make the object slide? I am specificaaly having trouble finding the angle.
Compared in the real life : How Deming, Juran, Crosby, Feigebaum, Ishikawa and Taguchi can be compared in the real life? Can you identify what is similar between the three and what is dissimilar between them? You are to prepare table ( Comprehensive to compare them on various p..
Did the leader overcome those issues : What issues related to gender, diversity, and/or bad leadership impacted the leader? Make sure that you tie your answers to course concepts.  Did the leader overcome those issues? Was the leader effective? Explain. Make sure that you tie your answers..

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

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