Which type of risk are savings institutions least susceptible to? Interest rate risk Liquidity risk Credit risk Exchange rate risk

Q: What is full form of ERISA? Describe about it.

A: The full form of ERISA is the Employee Retirement Income Security Act which was established in the…

Q: Explain why pre-payment risk is more likely when a mortgage is young than when the mortgage is…

A: Prepayment risk refers to the risk for the companies or the banks, if the loan takers repay the loan…

Q: Identify briefly five questions a money manager should ask before recommending suitable investments…

A: ​Money manager is the financial advisor that helps its clients to invest their money in appropriate…

Q: Why do loan sharks worry less about moral hazard in connection with their borrowers than some other…

A: The person who charges a very high-interest rate when lending is known as loan sharks. Moral hazard…

Q: should banks have the right to assign a mortgage to a third party?

A: Answer in step 2.

Q: Which type of short-term loan is secured with Treasury bills as collateral?   A. Commercial paper…

A:

Q: Secured loans are backed up with assets that the lender can claim in case of default.     True or…

A: Secured loans are the loans in which borrower kept assets as a collateral to lender which then gives…

Q: money is a concept has a certain value at a point in time. true or false

A: Money is the concept that money you have in present is worth more than the identical sum in the…

Q: The issue centered on blockchain implementation methods and difficulties in the banking sector.

A: Definition: the important thing goal of the blockchain implementation segment is to take the models,…

Q: You are the manager of a local bank. Due to unstable financial conditions, savers are worried that…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Financial institutions such as banks pays lower interest rates to depositors and charge higher…

A: Democratic government is a type of government in which there is both public and private sector…

Q: depository instiutions do all the following except pool risks minimize the cost of obtaining funds…

A: Depository institution is the financial institution that works as a mediator between the savers and…

Q: Although both deposit accounts can earn interest, savings accounts typically have higher rates than…

A: The banking industry is critical to the economy because it offers loans to businesses and…

Q: Should bankers be empowered by law to inquire into the sources of their customers' deposit?

A: Every day, bankers, often referred to as retail bankers, work with customers by helping them with…

Q: Which of the following is NOT TRUE about Insurance companies? * a. They are non-depository…

A: When product or a particular service is manufactured, cost  takes place and process of business…

Q: Definition of the initial cash reserve

A: Cash reserves are funds held on hand by a company or a person to meet short-term and emergency…

Q: what is the benefit of offshore banking to clients

A: An offshore bank is one that is governed by an international banking license that prevents it from…

Q: canda does not have an institution like fannie mae that securitzes mortgages. How do you think this…

A: Given  The statement is canda does not have an institution like fannie mae that securitzes…

Q: Which type of security has interest payments that are generally exempt from federal income taxes?…

A: T-bonds or Treasury bonds are fixed-rate government debt security by the U.S. with maturity mostly…

Q: Advance reasons why commercial banks place emphasis on the management of risk.

A: Commercial banks accept deposits from the depositors and use these deposit to lend in the market.…

Q: Saving deposits, Money market mutual fund, Small time deposits are included in M1 and smaller than…

A: In macroeconomics, money is important as it is used to carry daily transactions and for making…

Q: The process of bundling loans together and buying and selling these bundles in a secondary financial…

A: A secondary financial market is a market where the securities and financial instruments are sell and…

Q: Because financial intermediaries operate on a big scale, this relates to minimizing the costs of…

A: A firm producing output can yield increasing, decreasing or constant returns to scale.

Q: Possession of information by one party in a financial transaction but not by the other party is…

A: answer : asymmetric information where possession of information by one party in a financial…

Q: what are the better ways to reduce banking sector risks?

A: Reducing the risk inherent in the banking sector can be very important for regulatory authorities as…

Q: They act as mediators between two parties: those who supply funds and those who seek them. * A.…

A: Companies that deal in financial and monetary transactions are classified as financial institutions.…

Q: Define what financial instisutions are and give examples to explain your understanding

A: Types of financial institutions include: 1. Depository institutions:  These institutions are deposit…

Q: Required reserves of banks are a fixed percentage of their: Select one: Loans Deposits Assets…

A: Required reserve is the amount that bank have to keep with the central bank in  fixed percentage of…

Q: Is it important to have an access to different financial services? Explain your answer.

A: Financial services are economic services offered by the financial sector, which includes a variety…

Q: Mortgage pools that are generally broken up into tranches, repackaged, and marketed to investors as…

A: A mortgage refers to the credit that is for  buying or maintaining a home, land, or other piece of…

Q: The process of bundling loans together and buying and selling these bundles in a secondary financial…

A: There are two types of financial Market to exchange money and monetary instruments, such that…

Q: The consequences of instability to adheres to quality delivery process in banking firm

A: Banking  Banking refers to the system in a country, which provides financial services to the…

Q: What are the primary differences between different types of banks (savings, commercial, investment,…

A: Saving bank: The financial institution which accepting savings deposit as their primary purpose is…

Q: What are the risks if banks are not supervised by the government thru Bangko Sentral ng Pilipinas?…

A: The primary purpose of the central bank of any economy is the regulation of the banking and…

Q: All of the following are examples of savings vehicles EXCEPT Savings account Money Market Account…

A: Individuals receive income for various services provided by them in the production of goods and…

Q: Federal insurance of bank deposits insulates depositors from​ risks, so depositors are (less or…

A: Answer The bank managers have an incentive to invest in riskier assets to make higher rates of…

Q: Discuss Four (4) risks face by commercial bank with asymmetric information.

A: Asymmetric information refers to market situation when the trading parties has unequal information…

Q: What are the arguments for and against deposit insurance such as that provided by the FDIC?

A: For: Safety deposit Prevents bank-run Increase savings Open bank assistance Prevents economic…

Q: Banks don't lend out all of the funds deposited because:     A) they need to make more…

A: Bank is financial institution that controlled and monitor by the central bank of the respective…

Q: Economics A bank run in the Diamond-Dybvig banking model makes A.both early consumers and late…

A: In this model,both assets and liabilities are considered.

Q: Summarize howtransaction costsaffect financial intermediaries.

A: While buying or selling a good or services, the expenses incurred are known as transaction costs .…

Q: A bank that wishes to reduce its credit risk could: A. Sell risky loans from its loan portfolio B.…

A: In the banking sector, when bank lend out money, it has to bear a default risk on various assets.

Q: Why do we call a bank a financial intermediary?

A: An individual or a firm or a party who is placed between two other parties are called Intermediary…