Questions from Financial Markets


Q: Why do you think some banks suffered larger losses during the credit

Why do you think some banks suffered larger losses during the credit crisis than other banks?

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Q: Merrito Inc. is a large U.S. firm that

Merrito Inc. is a large U.S. firm that issued bonds several years ago. Its bond ratings declined over time, and about a year ago, the bonds were rated in the junk bond classification. Yet, investors c...

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Q: What are likely reasons for weak bank performance?

What are likely reasons for weak bank performance?

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Q: If a bank shifts its loan policy to pursue more credit card

If a bank shifts its loan policy to pursue more credit card loans, how will its net interest margin be affected?

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Q: What has been the trend in noninterest income in recent years?

What has been the trend in noninterest income in recent years? Explain.

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Q: How could a bank generate higher income before tax (as a

How could a bank generate higher income before tax (as a percentage of assets) when its net interest margin has decreased?

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Q: Suppose the net income generated by a bank is equal to 1

Suppose the net income generated by a bank is equal to 1.5 percent of assets. Based on past experience, would the bank experience a loss or a gain? Explain.

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Q: Why have large money center banks’ noninterest income levels typically been higher

Why have large money center banks’ noninterest income levels typically been higher than those of smaller banks?

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Q: What does the assets/equity ratio of a bank indicate?

What does the assets/equity ratio of a bank indicate?

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Q: What are some of the more common reasons for a bank to

What are some of the more common reasons for a bank to experience a low ROA?

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