Questions from Financial Markets

Q: What are the major functions performed by the FDIC?

What are the major functions performed by the FDIC?

Q: For each of the following banking organizations, identify which regulatory agencies

For each of the following banking organizations, identify which regulatory agencies (OCC, FRB, FDIC, or state banking commission) may have some regulatory supervision responsibility. a. State-chartere...

Q: What are the advantages and disadvantages of international expansion?

What are the advantages and disadvantages of international expansion?

Q: What are the principal types of financial assets for commercial banks?

What are the principal types of financial assets for commercial banks? How has the relative importance of these assets changed over the past several decades? What are some of the forces that have caus...

Q: Why do commercial banks hold investment securities?

Why do commercial banks hold investment securities?

Q: What are the principal liabilities for commercial banks? What does this

What are the principal liabilities for commercial banks? What does this liability structure tell us about the maturity of the liabilities of banks? What types of risks does this liability structure en...

Q: What type of transaction accounts do commercial banks issue? Which type

What type of transaction accounts do commercial banks issue? Which type of accounts have dominated the transaction accounts of banks?

Q: What are the three major segments of deposit funding? How are

What are the three major segments of deposit funding? How are these segments changing over time? Why? What strategic impact do these changes have on the profitable operation of a bank?

Q: Repeat parts (a) through (c) of Problem 13

Repeat parts (a) through (c) of Problem 13 using a required rate of return on the bond of 11 percent. What do your calculations imply about the relation between time to maturity and bond price volatil...

Q: How does the liability maturity structure of a bank’s balance sheet compare

How does the liability maturity structure of a bank’s balance sheet compare with the maturity structure of the asset portfolio? What risks are created or intensified by these differences?