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Answer true or false
1..Your personality should be considered in making an investment
2. An investors financial position will also affect his or her objectives.
3. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturity.
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Solved in 2 steps
- Answer true or false 1. An investors financial position will also affect his or her objectives. 2. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturityIn making a financing decision, how would a financial manager answers questions like: 1. How should the cash required for investment be raised?2. Should we borrow from a bank or should we issue new shares ofstocks?The investment banker does all of the following except a. make long-term investments for banking institutions b. advise clients c. bear the risk of selling a security issue d. act as a middleman between the issuer and buyer of a new security
- Which of the following statements is false? A. Moral hazard is the lack of incentive to guard against risk where one is protected from its consequences. B. Information about a bank’s activities and financial performance is available in the bank’s financial statements. C. As long as everyone continues to accept the paper bills in exchange, they will have value and serve as currency. D. To an economist, money is the stock of assets that can be readily used to make transactions.How should a bank structure its liquid assets portfolio to take advantage of falling interest rates ? a. The bank should invest in short-term securities to minimise capital loss b. The bank should invest in long term securities to maximise capital gains. c. The bank should borrow at fixed interest rates d. The bank should issue certificate deposits with fixed interest rates. e. The bank should hold cash to maximise its interest income. Which option is correct1. Which of the following statements are true?a. The value of any investment is based on the cash flows it is expected to generate in the future.b. Investors are not generally risk averse.c. Uncertain cash flows are preferred to certain cash flows.d. All of the above are true.e. None of the above are true. 2. A basic knowledge of finance will help you with your personal investments by helping you understanda. how to accurately predict changes in the short-term interest rates.b. how to determine the optimal dividend policy for each firm.c. how to determine which technology is most likely to be accepted by consumers.d. how to review companies and industries to determine their prospects for future growth and therisk inherent in those companies and industries.e. how to predict the growth in sales for the firm. 3. Which of the following events would make it more likely that a company would choose to call itsoutstanding callable bonds?a.A reduction in market interest rates.b.The company's…
- c) If the interest rates go up by 1%, using the duration and convexity rule to determine the net worth of the bank and the equity to asset ratio d) In c)’s scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise? D) IS IN NEED ONLY. plz show the process.Two statements are given below about Marketable Securities: Statement 1: Marketable securities does not substitute for cash balances. Statement 2: Marketable securities offer a place to temporarily put cash balances to work earning positive returns a. The first statement is TRUE and the second statement is FALSE. b. Both statements are TRUE. c. The first statement is FALSE and the second statement is TRUE. d. Both statements are FALSE.please view images below c. Does the bank have enough capital to meet the Basle requirements? If not, what minimum Tier 1 or total capital does it need to meet the requirement? d.Discuss the major shortcomings of the Basle I accord.
- D4) Finance Provide a specific transaction that the bank could implement to minimize its interest rate risk. the transaction may be a new asset funded by a new liability or an asset sale under simultaneous purchase of another asset.Choose the correct answer. 1. Which of the following is not among the risks that need to be evaluated in financial planning? a. inflation risk b. liquidity risk c. relationship risk d. health risk 2. Personal financial activities involve the following three main decision areas, except a. Save b. Spend Share Sell c. Share d. SellWhen deposit inflows exceed loan demand a bank can A. No answer text provided. B. buy back shares C. give larger dividends to customers D. invest to safe fixed income securities -