Questions from Financial Markets

Q: Describe the structure of banks in terms of bank charters, branch

Describe the structure of banks in terms of bank charters, branch banking, and bank holding companies.

Q: What are the major asset categories for banks and identify the most

What are the major asset categories for banks and identify the most important category. What are a bank’s major liabilities and stockholders’ equity and which category is the largest in size?

Q: What is meant by bank liquidity and bank solvency?

What is meant by bank liquidity and bank solvency?

Q: Describe how assets are managed in terms of a bank’s liquidity risk

Describe how assets are managed in terms of a bank’s liquidity risk. Also briefly describe how liquidity management is used to help manage liquidity risk.

Q: 1. If you wish to compound or discount quarterly (four

1. If you wish to compound or discount quarterly (four times a year), for a period of five years, what would be the number of periodic payments (or receipts)? a. Five b. Ten c. Fifteen d. Twenty...

Q: Describe what is meant by liquidity risk, credit risk, and

Describe what is meant by liquidity risk, credit risk, and interest rate risk.

Q: Describe the major financial institutions engaged in getting the savings of individuals

Describe the major financial institutions engaged in getting the savings of individuals into business firms that want to make investments to maintain and grow their firms.

Q: Define and describe the following terms: common equity capital ratio,

Define and describe the following terms: common equity capital ratio, tier 1 ratio, and total capital ratio. How are these used by bank regulators?

Q: What were the Basel Accords and what was their purpose?

What were the Basel Accords and what was their purpose?

Q: Define international banking. Describe how some foreign banking systems differ from

Define international banking. Describe how some foreign banking systems differ from the U.S. banking system.