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Why do federally guaranteed loans usually have the least risk for banks, List some popular guaranteed loan programs.
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- why do banks consider interest on loans to be important?Describe a short-term financing option and discuss the advantages and disadvantages. Is there a limit to the amount of a short-term bank loan?What risks might commercial bank operations face by funding long-term loans such as mortgages to borrowers (often at fixed interest rates) with short-term deposits from savers? What steps could the financial institution take to reduce these risks?
- What risks might commercial banks face if they use short-term deposits from savers to pay for long-term loans, like mortgages, that often have fixed interest rates? What could the financial institution do to lower these risks?What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and trying to get a loan, which is the best method to use (NPV, IRR, Payback period)?What is the difference between Investment Banks and regular Banks? explain one small paragraph.
- Why lenders assume no risk in granting loan to the government though the return of this type of loan is minimal?How does a bank try to achieve the best possible risk adjusted return on its overall loan portfolio?what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM FOR THE BANKS AND BORROWERS? provide EXAMPLES.
- Write some of the examples of commercial loans?What is SBA LoansWhy is credit risk management important and what are the features of a loan or debt instrument it determines? What is the difference between a spot loan and revolving loan? What is loan commitment? What are the different rates that have replaced LIBOR and in what countries/economic blocs are they used in? What are the borrower and market specific factors that impact the return on a loan for a financial institution? Are higher interest rates a restrictive or stimulative form of monetary policy and explain your answer?