Distinguish between illiquidity and insolvency as it affects a bank and discuss the reasons why banks are vulnerable to these problems.

Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Bank liquidity refers to measures of cash and other assets equivalent to cash which is available…

Q: Explain

A: The "Anti-Money Laundering Council" (AMLC) is the government entity entrusted with implementing the…

Q: Why is it important to prepare a bank reconciliation?

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: What is the purpose of the Manual of Regulations for Banks (MORB)

A: MORB stands for Manual of regulations for banks is nothing but an authoritative codifications of…

Q: balance-sheet mismatch that financial intermediaries

A: Financial intermediaries as the name suggest are the middlemen between two parties engaged in a…

Q: Ways that banks compete for customers

A: Introduction: Banking is a highly competitive sector with virtually similar goods offered by all…

Q: 1.Explain the basic principles of good banking credit and the internal causes of the Bank that cause…

A: One of the important functions of the bank is to provide credit to the borrowers, however, they…

Q: Why Central banks requires banks to hold that amount of money?  explain ?

A: Banks accept public deposits and lend that amount as loan to individual and companies at a higher…

Q: What is the role of the Core Principles of Effective Bank Supervision as it relates to operational…

A: Core Principles for Effective Banking Supervision that Supervisors across the globe may consider…

Q: 1- The purpose of deregulation is to ensure stability and prevent banking crises. True or False. 2-…

A: 1) True Deregulation support the idea that competition and openness in financial markets are…

Q: xplain the main risks that banks face and discuss how banks manage these risks.

A: Credit risk, operational risk, market risk, and liquidity risk are all major risks for banks. Banks…

Q: What special problem do off-balance-sheet activities present to bank regulators, and what have they…

A: Off- Balance sheet activities or items includes the resources and obligations which are not recorded…

Q: properly defaults and is under liquidation, can the creditors of the bank touch and receive the…

A: Answer: Concept: When the liquidation occurs in bank, there is preferential payment that are to be…

Q: What is the purpose of preparing a bank reconciliation?

A: Bank reconciliation is prepared to reconcile the company's cash book that is reconciled with its…

Q: If a bank is in a 'state of continuing inability or unwillingness to maintain a condition of…

A: Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet…

Q: The concept of too big to fail creates a problem for? a. Bank manager b. Regulators c. Bank managers…

A: Too big to fail: It characterizes a company or trade division considered to be so profoundly…

Q: How is responsible for preparing the bank reconciliation and what is the pur Pose of it:

A: Bank Reconciliation Statement - A statement showing the business activity of the company to…

Q: Direction: Answer the following questions. The main difference between other financial institutions…

A: A financial institution (FI) is a firm that deals with financial and monetary activities such…

Q: Could efforts to avoid conflicts of interest lead an investment bank to provide poor service to a…

A: An investment is a financial institution that provides services to the company. Mainly, the clients…

Q: A. What is a bank reconciliation and why is it important for companies to do it periodically?

A: Balance per bank Add : Undeposited collections Total Deduct : Outstanding checks Check No. x…

Q: What bank regulations are designed to reduce moral hazard problems created by deposit insurance?…

A: Bank regulation is defined as the government regulation form that is subjected to requirements,…

Q: Do you think it is possible for depositors to discipline bank managers who are tempted to take…

A: The funds of the depositors are used by the bank managers in a manner that they consider best and…

Q: Except for those who actually are planning to commit fraud, every borrower who ever applied to a…

A: The loans and advances given to bank’s customer will comprise the bank’s asset. When the returns or…

Q: What is a central bank,

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Select all that are true regarding liquidity risk for a bank. O Consumer trust in the bank ensures a…

A: The answer is provided below.

Q: What’s the difference between a commercial bank and an investment bank?

A: A financial institution that provides services such as accepting the deposits and providing the loan…

Q: Two types of financial risks faced by banks operating in the Financial sector and state how a risk…

A: Banks are eposed to some risks such as credit risk, operational risk, market risk and liquidity…

Q: Why some banks have failed in their jurisdiction?

A: As per the RBI, because of their scale, jurisdictions, difficulty, and absence of replacement and…

Q: a bank's most important asset is its deposits. true or false?

A: Bank is financial intermediary when helps as a intermediary for a borrower and lender.

Q: Effective crisis management requires a strong bank resolution framework. What are the pros and cons…

A: A strong bank resolution framework will provide banks with  a prudential framework  which will  make…

Q: Explain why the money listed under assets on a bank balance sheet may not actually be in the bank?

A: Balance sheet of the bank used to operate under an assets, where the net worth of bank used to…

Q: What is evergreening in banking and why it may arise as an equilibrium choice of banks. Carefully…

A: Answer:-  Evergreening:- Evergreening technically refers to the practice of "managing" the balance…

Q: Explain liquidity risk and credit risk faced by banks and discuss how banks manage these risks

A: Liquidity risk It is characterized as the risk of bringing about misfortunes coming about because of…

Q: Why regulations are important for Banks.

A: The most important rationale for regulation in banking industry is to concerns over the stability…

Q: (a) Distinguish between the activities of retail and investment banks and discuss how this has an…

A: An investment is an asset or item purchased for the purpose of generating an increase in income or…

Q: To minimize systemic risk in the banking system, which prudential measure has been put in place in…

A: A breach of this fiduciary responsibility might result in the misbehaving bank being held…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.