What should a bank do if inflation decreases

Assignment Help Business Economics
Reference no: EM13987310

The profitability of a bank depends on several different factors.

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

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

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

Reference no: EM13987310

Questions Cloud

About discrimination on the basis of national origin : Which of the following statements about discrimination on the basis of national origin is true?
What are most significant regulatory improvements of basel : In the aftermath of the 2008 Financial Crisis, the Basel 3 Accord sought to reduce systemic risk. What are the most serious problems with Basel 2? What are the most significant regulatory improvements of Basel 3? Which provisions do you believe are m..
Examples of consumer loan products and investment securities : The 2000s witness a dramatic increase in Financial Engineering that produced a wide range of new loans and investment products. What is Financial Engineering? Provide examples of consumer loan products and investment securities. How did Financial Eng..
Report on the health of financial institutions : Bank regulators are required to examine and report on the health of financial institutions. How does the bank reserve ratio requirement affect its lending ability? How do “sweep” accounts help banks avoid their reserve requirements? How do money mark..
What should a bank do if inflation decreases : The profitability of a bank depends on several different factors. Why is “Duration Analysis” so important to a bank? What should a bank do if inflation increases?   Explain with examples. What should a bank do if inflation decreases? Explain with exa..
What is the amount of law services revenue that will be : During 2015, Maverick Law Firm had the following transactions with it clientsOn February 1, 2015, the company received cash of $5,800 from clients in payment of their account balances as of December 31, 2014. What is the amount of Law Services Revenu..
How many cases the hospital should order to minimize : In the boxes below, indicate how many cases the hospital should order to minimize total costs. Also indicate the price they should pay and how much will they spend annually on liquid cleanser.Qty Price1-49 $2050-79 $1880-99 $17100+ $16
Management of risk is crucial to the profitability of banks : The management of risk is crucial to the profitability of banks. What are the most important risk management principles that involve approving loans? What is Adverse Selection? What is Moral Hazard? Why do they make the underwriting process for lendi..
How do search sites drive consumers to retailers : What is price information asymmetry? Explain the reason for search online purchase offline behavior. How do search sites drive consumers to retailers? What are the benefits of barter? Who determines whether a price is fair? Why is price often a light..

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