Podcast
Questions and Answers
What does Asset Management aim at?
What does Asset Management aim at?
- Deciding the diversified portfolio of sources of fund
- Generating the maximum profit for the commercial bank
- Minimizing the cost for the commercial bank
- Maximizing the return for the commercial bank (correct)
What is the main goal of Liability Management?
What is the main goal of Liability Management?
- Deciding the diversified portfolio of uses of fund
- Maximizing the return for the commercial bank
- Generating the maximum profit for the commercial bank
- Minimizing the cost for the commercial bank (correct)
What is the purpose of Liquidity Management?
What is the purpose of Liquidity Management?
- Deciding the diversified portfolio of uses of fund
- Minimizing the cost for the commercial bank
- Allowing the bank to pay off its liabilities in case of having a deposit outflow (correct)
- Maximizing the return for the commercial bank
Why can't the reserves be equal to zero according to Liquidity Management?
Why can't the reserves be equal to zero according to Liquidity Management?
What does the Central bank obligate banks to do in terms of liquidity management?
What does the Central bank obligate banks to do in terms of liquidity management?
What is 'Excess Reserves' in liquidity management?
What is 'Excess Reserves' in liquidity management?
What is the formula for Excess Reserves (ER) in a bank?
What is the formula for Excess Reserves (ER) in a bank?
What is the purpose of liquidity management in a bank?
What is the purpose of liquidity management in a bank?
How can a bank cover a liquidity shortage if actual reserves are lower than the required reserves?
How can a bank cover a liquidity shortage if actual reserves are lower than the required reserves?
What happens if a bank borrows from the Central Bank to cover a liquidity shortage?
What happens if a bank borrows from the Central Bank to cover a liquidity shortage?
What is the formula for Total Reserves (R) in a bank?
What is the formula for Total Reserves (R) in a bank?
What does the excess reserve ratio refer to in a bank?
What does the excess reserve ratio refer to in a bank?
What is the function of financial markets?
What is the function of financial markets?
What are securities in the context of financial markets?
What are securities in the context of financial markets?
How is direct finance conducted in the financial markets?
How is direct finance conducted in the financial markets?
What is the classification of financial markets based on debt and equity?
What is the classification of financial markets based on debt and equity?
In indirect finance, how are funds transferred in financial markets?
In indirect finance, how are funds transferred in financial markets?
What are debt instruments and equity in the context of obtaining funds in a financial market?
What are debt instruments and equity in the context of obtaining funds in a financial market?
Which type of securities are considered long-term and have no maturity date?
Which type of securities are considered long-term and have no maturity date?
In which market are only short-term debt instruments traded?
In which market are only short-term debt instruments traded?
What does an investment bank do in the primary market?
What does an investment bank do in the primary market?
Which market is known for smaller fluctuations in prices, making it safer for investments?
Which market is known for smaller fluctuations in prices, making it safer for investments?
Where do buyers and sellers of securities meet in one central location to conduct trades?
Where do buyers and sellers of securities meet in one central location to conduct trades?
Which type of security represents a claim to share in the net income and profits of a business?
Which type of security represents a claim to share in the net income and profits of a business?
What is the maturity range for intermediate-term securities?
What is the maturity range for intermediate-term securities?
In which market are longer-term debt and equity instruments traded?
In which market are longer-term debt and equity instruments traded?
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