Why do think loans are the biggest assets of the banks

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Question 1: Explain each of the following types of deposit accounts:

a demand deposit

b. certificate of deposit

c. money market demand account

Question 2: Discuss the difference between credit risk and interest rate risk.

Question 3: Suppose $10000 is deposited at a bank. The required reserve ratio is 25 percent and the bank chooses not to hold any excess reserves but makes loans instead.

What are the banks total reserves?

The total reserves are the 25% of the total deposits as the banks decides not to hold excess reserves.

Question 4: Why do you think loans are the biggest assets of the banks?

Question 5: Considering COVID-19 into account discuss the reason why most of the lending/FIs have stopped giving out loans.

Question 6: Discuss the difference between primary and secondary functions of commercial banks

Reference no: EM132594781

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