According to the Central Bank of Oman the minimum paid up capital requirement is for local banks is RO 100 million and assigned capital requirement for foreign banks in Oman is RO 20 million. Select one: O a. Local banks RO 200 million; foreign banks RO 20 million. O b. local banks RO 100 million; foreign banks RO 50 million. O c. Local banks RO 20 million, foreign banks RO 100 million. O d. Local banks RO 100 million; foreign banks RO 20 million.
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- Suppose the Bangladesh Bank purchases a government bond from you for TK 10,000. a. Suppose you deposit the TK 10,000 in First Security Bank. Show this transaction on First Security Bank's T-account. 02 b. Suppose the reserve requirement is 20 percent. Show First Security Bank's T-account if they loan out as much as they can. 02 c. At this point, how much money has been created from the Bangladesh Bank’s policy action?For each of the following events/items, state whether the impact is positive(+), negative (-) or no impact (0). a) A Malaysian company borrows in Euros from Deutsche Bank. The loan is repayablein six months. The Ringgit appreciates against the Euro. b) What happens if the loan in (a) above is repayable in one lump sum in five yearsfrom now and the Euro now appreciates against the Malaysian Ringgit? c) A Malaysian mutual fund invests in an Australian ETF (exchange traded fund). TheAustralian Dollar appreciates against the Malaysian Ringgit.Identify whether each of the following is a debit or a credit in Mexico’s BOP and indicate where the item would be classified.( Specifically indicate the account and the item as credit or debit) d) Mexico receives $10 million in foreign aid from the United States. e) Mexican citizens deposit $5 million in Citibank account in New York. f) Mexico imports $110 million worth of goods. g) Mexican firms borrow $45 million by issuing bonds in the United States. h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico. h) The Mexican Central bank buys $15 million in U.S. Treasury bills. Suppose that these are all of the entries in Mexico’s BOP table. State if Mexico is net lender or borrower vis- a -vis the rest of the world? Calculate the value of errors and omissions. Thanks.
- Smart Banking Corp. can borrow $5 million at 6 percent annualized. It can use theproceeds to invest in Canadian dollars at 9 percent annualized over a 6-day period. TheCanadian dollar is worth $.95 and is expected to be worth $.94 in 6 days. Based on thisinformation, should Smart Banking Corp. borrow U.S. dollars and invest in Canadiandollars? What would be the gain or loss in U.S. dollars?Suppose that the assets of a bank consist of $100 million of loans of BBB-rated corporations. The PD for the corporations is estimated as 1%. The average maturity is five years and the LGD is 60%. What is the total risk-weighted assets for credit risk under the Basel II advanced IRB approach? Question 5Answer a. $178.1 million b. $13.2 million c. $165.4 million d. $100 millionDiamond Bank expects that the Singapore dollar will depreciate against the dollar from its spot rate of $.43 to $.42 in 60 days. The following interbank lending and borrowing rates exist: Lending Rate Borrowing Rate U.S. dollar 7.0% 7.2% Singapore dollar 22.0% 24.0% Diamond Bank considers borrowing 10 million Singapore dollars in the interbank market a nd investing the funds in dollars for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Diamond Bank pursue this strategy?
- QUESTION Imagine that Hazim Islamic bank, has the following asset and financial details: Balance Sheet Items RM (million) Risk weightage BNM statutory reserve 20 0% Malaysian government securities (MGS) and treasury bills 60 0% Placement with discount houses 30 10% Amounts owed by banking institutions 50 20% House financing secured by first charge on residential property 120 50% Financing and advances provided to commercial customers 400 100% Off-balance sheet items RM (million) Credit Conversion Factor Risk weightage House financing sold to Cagamas with recourse 60 100% 50% Performance sukuk for commercial customers 20 50% 100% Letters of credit for commercial customers 70 20% 100% Capital RM (million) Paid up ordinary shares 30 Share premium 5 Retained profits 10 Subordinated term debt 14 Revaluation reserve 4…Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per U.S. Dollar Suppose you would like to buy Canadian Dollars and sell U.S. Dollars. Given the quotes above, what rate would you receive? Group of answer choices 0.0115 CAD per USD 2.5249 CAD per USD 1.2682 CAD per USD 1.2567 CAD per USDA Canadian bank has operations in USA. 65% of their net cash flow is from Canadian operations and 35% is from the US. What are the 3 elements to be used to determine the value of this bank? With the Canadian dollar appreciating relative to the US dollar how will the valuation of this bank be affected?
- MSN Bank expects that the New Zealand dollar (NZD) will depreciate against the U.S. dollar (USD) from its spot rate of $.44 to $.41 in 90 days. The following interbank lending and borrowing rates exist: Annual borrowing rate Annual lending rate USD 7.20% 7.00% NZD 10.00% 9.00% MSN Bank considers borrowing 2 million New Zealand dollars in the interbank market and investing the funds in U.S. dollars for 90 days. Estimate the profits (or losses) that could be earned from this strategy. Should MSN Bank pursue this strategy? Show necessary calculations and discuss (50 words excluding calculations).MSN Bank expects that the New Zealand dollar (NZD) will depreciate against the U.S. dollar (USD) from its spot rate of $.44 to $.41 in 90 days. The following interbank lending and borrowing rates exist: Annual borrowing rate Annual lending rate USD 7.20% 7.00% NZD 10.00% 9.00% MSN Bank considers borrowing 2 million New Zealand dollars in the interbank market and investing the funds in U.S. dollars for 90 days. Estimate the profits (or losses) that could be earned from this strategy. Should MSN Bank pursue this strategy? Show necessary calculations and discuss.If national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer payments TR = 150 and the budget deficit is BD = 200, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)