Deregulation is the process of implanting new rules and restrictions. Group starts. True or False

Q: Choose the correct. A company’s management has uncovered events that indicate that substantial doubt…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: 4. When an organization underwrites and distributes new investment securities to helps businesses…

A: Business raises finance from various sources such as equity , bonds loans etc to meet its business…

Q: In the Movie House of Cards, which of the following contributed to th I. Banks lending to…

A: Recession of 2006-2008 one of main event in financial sector which have more impact on whole…

Q: Which of the following statements is false? A.   Moral hazard is the lack of incentive to guard…

A: Analysis of the options:   A: Moral hazard is the lack of incentive to guard against risk where one…

Q: Which of the following losses can be considered as operational risk losses? a) A counterparty going…

A: Operational risk is defined by the Bank for International Settlements (BIS) as the risk of loss…

Q: Core Principle 3 states information is the basis for decisions. Suggest one way in which the…

A: The word "shadow bank" was first used in the United States just before the global financial crisis…

Q: According to Koch and MacDonald (2009), banks’ risk can be identified as six types: credit risk,…

A: Model risk is a type of risk that arises when a financial model is used to calculate quantitative…

Q: Critically examine three important factors that threaten the liquidity risk management efficiency of…

A: Liquidity is the most important factor for contemporary banks because it requires more day to day…

Q: Credit markets are driving long-term changes in banks. Forces that combined to lead to a…

A: Cost of credit depends on quality of credit provided.

Q: TRUE OR FALSE 1. Short-term financial policies that are flexible with regard to current assets…

A: 1. Short-term financial policies that are flexible with regard to current assets includes keeping…

Q: Which of the following is NOT a reason for sales discounts to be offered to the debtors(customers)?…

A: Sales Discount :-  Sales discount is offered to debtors to encourage earlier settlement of debts by…

Q: Banks improves the liquidity of the bank by

A: The correct answer is c. Generating additional income from investment

Q: 6) Which of the following is not a benefit of loan monitoring? Encourages dynamic, rather than…

A: Loan Monitoring is the tacking of an individual’s credit history, for any changes or suspicious…

Q: Answer true or false 1. An investors financial position will also affect his or her objectives. 2.…

A: Investment means engaging your funds to generate income for the future. There are various…

Q: Q1. One financial intermediary in our financial structure that helps to reduce the moral hazard…

A: Note: "Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Which of the following statements about transaction costs and financial intermediation is not true?

A: intermediaries are important in financial transactions in security market they reduce costs of…

Q: 9. What type(s) of corrective action might bank regulators take against a 'problem bank'? A. Examine…

A: A problem bank is referred to as a bank that is in potential danger of failure.

Q: Which of the following actions could be used to resolve the too-big-to-fail problem?   A. Force…

A: Too-big-to-fails refers to a problematic situation which may arises due to the failure of some of…

Q: FinTech firms are facing increased regulatory oversight. A risk event at a FinTech firm can result…

A: The danger of losing money on an investment or business endeavor is referred to as financial risk.…

Q: Select all that are true regarding liquidity risk for a bank. O Consumer trust in the bank ensures a…

A: The answer is provided below.

Q: Match the correct type of bank risk with the appropriate associated statement. 1.The possibility…

A: Risk is referred as the possibility of the something bad happened. It also involves in an…

Q: First National Bank has assets that are more rate-sensitive than its liabilities.  As interest rates…

A: Changes in interest rates will affect the company’s financial statements either in positive way or…

Q: Only (b) and (c) are true.

A: Mark to market rule refers to the method in which fair values in the account which relate to the…

Q: Distinguish between ethical issues and legal issues. 2. When a company has a strong internal control…

A: SOLUTION ETHICAL VALUES WHICH SERVE TO DISTINGUISH BETWEEN GOOD OR BAD , RIGHT OR WRONG AND MORAL…

Q: QUESTION 9 Governments require some banks to conduct stress tests of their financial situation.…

A: Financial situation is a monetary term. It is the performance or growth of any organisation in terms…

Q: Statement A: Capital acts as regulator of growth. If bank is trying to grow too fast, shortage of…

A: Answer : Agree with B but not with A.

Q: Based on what you have read in the case what can you deduce about the ability of banks to manage…

A: Since you have not mentioned the specific question we will just answer the first question in case…

Q: the the presence of the Regulator and a solid legal system backing it. From the discussion in class…

A: Banks play a very important financial intermediary role in any economy. This role is heavily…

Q: explain 5 course of actions to mitigate risks in the financial sector during this crisis

A: Mitigation means the counter plan for any situation arises to overcome that situation.

Q: Based on the statement list down True or false and explain why   1. A bank is a financial…

A: Financial system/ institutes facilitates flow of funds between individuals or organizations, from…

Q: If the deposits/loans ratio is relatively high for a bank, this implies an emphasis on: a.…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: Why banks are subject to intense regulations? Explain the circumstances where banks are sometimes…

A: Bank regulation is a form of government regulations which subjects banks to certain requirements,…

Q: Credit Ratings Agencies face a moral hazard based on their Issuer-Par business model. Why is this…

A: Credit Ratings have always faced the ethical dilemma of having to provide credit for the issuer and…

Global issues

While studying the global issues, it is important to read the following topics to get a better knowledge: