Week 2 Assignment - Banks & NBFI_ Attempt 1 _ UNSW

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University of New South Wales *

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5512

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Business

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Feb 20, 2024

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Correct Mark 1.00 out of 1.00 Da… / M… / FINS5512-5243_00164 / Week 2 - Banks & NBFIs / Week 2 Assignment - Banks & NBFI Started on Sunday, 18 February 2024, 9:20 AM State Finished Completed on Sunday, 18 February 2024, 9:51 AM Time taken 30 mins 32 secs Grade 9.00 out of 10.00 ( 90 %) QUIZ When a bank raises funds in the international markets to fund new lending growth and hedges the exposure of the raised debt to interest rate risk with the help of derivatives, it is involved in: a. off-balance-sheet management b. liability management Correct c. derived management d. asset management Refer to section 2.1
Correct Mark 1.00 out of 1.00 Which of the following balance sheet portfolio items is NOT a source of funds for a bank? I Overdrafts II Lease ±nance III Call deposits IV Share capital V Consumer loans VI CD VII Term deposits I, V and VII I, II, and V Correct answer. Only I I, II, V and VI I, II and VII Your answer is correct. Refer to section 2.2 and 2.3
Correct Mark 1.00 out of 1.00 Match OBS services with corresponding examples: A performance bond provided by the bank to UNSW on behalf of a construction ±rm bidding to upgrade student learning spaces around the Quadrangle. A credit derivative provided by the bank to a hedge fund, whereby the bank will make a compensation payment to the holder if the Greek government defaults on their debt. A credit card limit provided by the bank that has been fully drawn down and used by the card holder. A standby letter of credit provided by the bank on behalf of a U.S.-based ±rm purchasing a gas turbine from a Swiss manufacturer, with the bank making payment only in the event that the U.S. ±rm fails to. An underwriting agreement obliging a bank to buy unsubscribed shares of the company at the IPO. Trade and performance related items Foreign exchange, interest rate and other market rate related contracts Not a contingent liability Direct credit substitutes Commitments Your answer is correct. Refer to section 2.4
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