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Questions and Answers
What do banks primarily invest in to create value for their capital providers?
What do banks primarily invest in to create value for their capital providers?
What is the primary source of bank liabilities?
What is the primary source of bank liabilities?
What type of account allows the owner to write checks to third parties?
What type of account allows the owner to write checks to third parties?
What is the main characteristic of money market deposit accounts?
What is the main characteristic of money market deposit accounts?
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What percentage of bank liabilities are made up of checkable deposits?
What percentage of bank liabilities are made up of checkable deposits?
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What is the approximate percentage of bank assets supplied by the bank owner?
What is the approximate percentage of bank assets supplied by the bank owner?
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What are the funds held in an account with the Federal Reserve, including vault cash, referred to as?
What are the funds held in an account with the Federal Reserve, including vault cash, referred to as?
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What type of risk is associated with the possibility of borrowers defaulting on their loans?
What type of risk is associated with the possibility of borrowers defaulting on their loans?
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What is the term for the process of a bank taking in short-term deposits and using the funds to make long-term mortgage loans?
What is the term for the process of a bank taking in short-term deposits and using the funds to make long-term mortgage loans?
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What is the primary goal of asset management in a bank?
What is the primary goal of asset management in a bank?
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What is the term for the management of a bank's sources of funds, including deposits and borrowed funds?
What is the term for the management of a bank's sources of funds, including deposits and borrowed funds?
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What is the primary function of an Asset-Liability Management (ALM) committee in a bank?
What is the primary function of an Asset-Liability Management (ALM) committee in a bank?
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What was the response to changes in demand conditions in the 1960s, leading to a huge increase in interest risk?
What was the response to changes in demand conditions in the 1960s, leading to a huge increase in interest risk?
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What was the primary benefit of sweep accounts to investors?
What was the primary benefit of sweep accounts to investors?
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What is the primary function of shadow banking systems?
What is the primary function of shadow banking systems?
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What innovation was introduced in the early 1980s to avoid reinvestment risk associated with coupon bonds?
What innovation was introduced in the early 1980s to avoid reinvestment risk associated with coupon bonds?
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What was the primary driver of the growth of shadow banking systems?
What was the primary driver of the growth of shadow banking systems?
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What was the primary benefit of improvement in technology to the financial industry?
What was the primary benefit of improvement in technology to the financial industry?
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What is the formula for Return on Equity (ROE)?
What is the formula for Return on Equity (ROE)?
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Why do banks hold capital?
Why do banks hold capital?
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What is the Net Interest Margin (NIM) formula?
What is the Net Interest Margin (NIM) formula?
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What is secutization?
What is secutization?
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What is the purpose of off-balance-sheet activities in banking?
What is the purpose of off-balance-sheet activities in banking?
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What drives financial innovation in the banking industry?
What drives financial innovation in the banking industry?
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