Where will we record when there is a decrease in liability? O a. Debit side O b. Credit side c. None of the options O d. Neutral

Deposits held as compensating balance   A. Usually do not earn interest B. If legally restricted and held against short term credit may be included as cash C. If legally restricted and held against long term credit may be included among current assets D. None of the above

The purpose of the inflation premium is to maintain the purchasing power of money while it is loaned to someone else. TTrueFFalse What kind of problem bad credit risks people pose to financial intermediaries ? AMoral hazard BNone of the above CAdverse Selection DFree-riding

Allowance for Bad Debts is what kind of account? Fill in the blank???????????

Which of the following liabilities would be considered nonrecourse?

TRYE OR FALSE   1- Insurance should be considered as a last resort in risk management ,and should be used only.   2- The probability that a loss may or may not occur is the most important factor in deciding what should be done about a risk.

H1.

how is the assessment in bad credit? note: include a reference

A higher interest rate results toa. increased amount of present value.b. decreased amount of present value.c. same amount of present value.d. Answer cannot be determined due to insufficient data

Liability management increases a bank's _________ risk and _________ risk.A. interest rate; priceB. liquidity; financialC. interest rate; financialD. price; interest rate