When deposit inflows exceed loan demand a bank can A. No answer text provided. B. buy back shares C. give larger dividends to customers D. invest to safe fixed income securities -

Question: If most of the pool of conventional bank is permissible then why do you say the income of the income of conventional banker is impermissible

Give typing answer with explanation and conclusion  When a bank increases its fed funds sold, its deposit balance in the Fed will _________ ; when a bank's deposit balance in the Fed increases, the bank has increased its fed funds______   Group of answer choices   increase; purchased   increase; sold   decrease; purchased   decrease; sold

Our textbook claims that one of the key services banks provide is maturity intermediation: what exactly does this mean?  (Choose an answer from the list below; only one is correct.) Reference:  Chapter 11 and/or Chapter 1    Banks borrow money from their younger customers and lend it to their older customers. Banks gather small deposits and use them to make large investments, allowing small investors to collectively buy large assets. Banks are funded with deposits that they promise to return on demand but use them to make long-term loans, which creates a mismatch in the maturities of their assets & liabilities.

What does a firm need to do to improve liquidity?   Extend credit terms to customers in order to gain more sales Stock up on inventory in order to never run out of stock Pay all bills and payables when due Speed up collection of accounts receivable from customers

and allow a financial intermediary to offer safe liquid liabilities such as deposits while investing the depositors money in riskier illiquid assets. Multiple Choice O Diversification; high equity returns Price risk; collateral Free riders; regulations

Which of the following is not likely cause of Default? Select one: O aLack of compliance with loan policies O b.Inadequate controls over loan officers c.Over concentration of bank lending in certain sectors or areas Od.Lending in familiar markets Oe.All of the above

One of the following statement is true about strategies of liquidity management Select one: O a. Asset Liquidity Management or Asset Conversion Strategy. This strategy calls for storing liquidity in the form of illiquid assets (T-bills, fed funds loans, CDs, etc.) and selling them when liquidity is needed b. Borrowed Liquidity or Liability Management Strategy. This strategy calls for the bank to purchase or borrow from the money market to cover all of its liquidity needs Balanced Liquidity Strategy. The C. use of liquid asset holdings (Asset Management) O d. No need to follow any strategy for liquidity management

Question about Securitization in Accounts Receivables How does a large company convert it's accounts receivables into securities? How does that process exactly work? And how does this benefit both parties? (when selling the security). Please explain this case and give an e.g for better understanding.

The investment banker does all of the following except a. make long-term investments for banking institutions b. advise clients c. bear the risk of selling a security issue d. act as a middleman between the issuer and buyer of a new security