Instructions In not less than five sentences, explain ONE risk that a banking company is exposed to and how do they address this risk. Please provide a real life example (or company) to support your answer.
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- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerl. An insurance policy that reimburses a company for any losses due to employee theft isa/an .__________________________Short answer, explain the consequences of the financial advisory and intermediaries act 2002, if not applied consistently in the banking sector? Only typing answer Please answer explaining in detail step by step without table and graph thankyouCalculate the profit of a bank by preparing income and expenditure statement. -Assume that you are an accountant in a PNZ Bank. From the following particulars, prepare the profit and loss account of bank PNZ for the year ended 31-03-2020. Particulars OMR Particulars OMR Locker rent Discount on bills discounted Director and auditor fee Establishment Expenses Interest on loan Interest on fixed deposit Interest on cash credit Sundry expenses Impairment for credit loss Transfer fee Fee and commission expenses Provision for doubtful debts Decrease in net changes in face value of sale of investment 70,000 2,100,000 50,000 600,000 2,800,000 2,980,000 2,400,000 20,000 2,000 5,000 25,000 300,000 900 Interest on current account Interest on over draft Interest on savings bank account Postage and telegram Printing and stationary Discount on bills discounted Rent and taxes Income tax expenses Depreciation Fee and commission income Profit on exchange difference arising on foreign…
- Based on the statement list down True or false and explain why 1. A bank is a financial institution that accepts deposits from the public and creates credit. 2. Corporate banking does not provide credit facilities to clients. 3. Good judges of human character are considered as art side of risk analysis. 4. Character in the Five Cs risk analysis refers to the willingness of clients to repay the loan. 5. Financial players prefer to use international financial centers because its easy to flexible trusts and special purpose companies.The speculative motive is the need to hold cash O a. To pay outstanding checks b. To maintain a firm's daily operations c. To invest in opportunities which may arise Od. To compensate a bank for services renderedArticles or any information from a website on "Importance of risk management mechanisms in the banking sector from customer's perspective"
- 1. What do you think are conditions that must be met if the banker is to honor the customer's cheques? 2. Can you describe any circumstances where it might be in the interest of the bank to divulge information about the affairs of one of its customers? 3. What duties does a customer have to his or her bank?A bank is considering implementing a business rules management system for assessing the riskand creditworthiness of individuals as part of the loan approval process.• List and explain 3 benefits of such a system?• List 2 potential legal or ethical issues that might arise in the use of such a system"The current month's bank statement for your account arrives in the mail. In reviewing the statement, you notice a deposit listed for $400 that you did not make. It has been credited in error to your account. Discuss whether you have an ethical or legal obligation to inform the bank of the error. What action should you take?" Thoroughly discuss the pros and cons of what the results would be if you reported it versus not reporting it. Be sure to tell what option you would choose and explain why."
- Statement I: A customer is any person, firm or company which has a bank account and for whom the banker has agreed to provide all the banking facilities. Statement II: Even the single deposit in the account is enough to designate the person as a customer of the bank. In the above statements: a. Only II is correct b. Both I and II are not correct c. Only I is correct d. Both I and II are correctShow how each of the following would initially affect a bank’s assets liabilities. Someone makes $1000 deposit into a checking account. A bank makes a loan of $1000 by establishing a checking account for $1000 The loan described in part (B) is spent. A bank must write off a loan because the borrower defaults.QUESTION 4 The author uses the term "bank" to describe several different types of financial institutions. Which of the following is NOT included under the group of firms called banks by Mishkin? A. Savings and loan institution B. Commercial bank C. Insurance company D. Credit union