s decreasing provisions for bad debts and loan a good recommendation for a bank

Q: 1)“Whether Payment Banks are threat to commercial banks and why their survival is still a question…

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

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: What is importance of Bank Reconciliation in business Perspective.

A: Bank reconciliation is the reconciliation between cash book balance in cash book and bank balance as…

Q: Why is it important to prepare a bank reconciliation?

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: What is the normal balance for bank overdraft and why?

A: The question has covered the concept of Bank Overdraft.  The Bank Overdraft is the facility provided…

Q: What is adverse selection?  Why does it predict that lenders will prefer to arrange loans through a…

A: The loan is the funds that a borrower takes from the lender at a certain rate of interest for a…

Q: 71. Which of the following is the usual activity classification of cash advances and loans made by…

A: Operating activities is the function directly retated to company's core business activities. Like…

Q: What caused the banking crisis? Explain b. Why was the Insurance Guarantee Agency established…

A: A banking crisis is a situation when the banks are at the point of solvency and liquidation. It may…

Q: From page 4-4 of the VLN, what is the goal of a bank reconciliation? Group of answer choices A. To…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Investment Banks & Securities Firms O A. Are depository institutions O B. Are not depository…

A: A financial institution is an intermediary that helps to move funds from surplus units to deficit…

Q: 1.Explain the basic principles of good banking credit and the internal causes of the Bank that cause…

A: One of the important functions of the bank is to provide credit to the borrowers, however, they…

Q: In an attempt of bank officials to collect and recover some loans from defaulters. There are soo…

A: Whenever a borrower fails to repay a debt, the lending institution begins the loan recovery…

Q: Which of the following is not a reason for banks to be regulated? a.To protect depositors. b.To…

A: A bank is a type of financial institution that handles all procedures linked to depositing and…

Q: Select all that are true regarding credit risk for a bank. OThis risk is an estimate of future…

A: Credit risk: It is the risk that is faced by the bank when borrower fails to make payment in a…

Q: f a bank's credit ratings decrease, How does this affect borrowers, lenders, and financial…

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

Q: Prove the statement with example "A bank should not sacrifice ether safety or liquidity to earn a…

A: Lending and accepting deposits are the two foremost basic functions as well as the very reason for…

Q: hich of the following is not a way in which banks lend short-term unsecured loans? a. Through a…

A: Banks give short term credits to the business to increase the business and grow business and provide…

Q: Banks improves the liquidity of the bank by

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

Q: Under what conditions may a bank refuse to make payment?

A: Conditions:- - when the customer has died - customer had insane or insolvent. - customer lost the…

Q: advantages and disadvantages of regulatory forbearance in banking. How useful has it been in…

A: Regulatory forbearance is the regulators' refusal to exercise their right to close down an insolvent…

Q: NSF results in a bank crediting one’s account. True or false

A: Non-sufficient funds in banking terms means that there is not enough money in the account to pay the…

Q: hat is the importance of regular bank reconciliations?

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

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: Doubtful debts are those debts which is unlikely to be able to collect, bank hiring a collection…

A: Bad debts are those debts that are yet to be collected. Third parties who collect the debt are…

Q: Direction: Answer the following questions. The main difference between other financial institutions…

A: A financial institution (FI) is a firm that deals with financial and monetary activities such…

Q: What bank regulations are designed to reduce moral hazard problems created by deposit insurance?…

A: Bank regulation is defined as the government regulation form that is subjected to requirements,…

Q: Which of the following statement is not true about Central bank? a. It ensures stable financial…

A: Central bank is the lender of last resort.

Q: 2. Substantial amount of credit losses is due to poor loan monitoring. In view of this, suggest how…

A: Loan is when the funds are given to some other party in an exchange regarding the repayment of the…

Q: Distinguish between illiquidity and insolvency as it affects a bank and discuss the reasons why…

A: Here are the two terms meanings, Illiquidity is considered as the short term problem of banks where…

Q: Which type of information asymmetry explains why bad credit risks are more likely to seek bank…

A: Adverse selection, as a rule, alludes to a circumstance where dealers have data that buyers do not…

Q: Which of the following statements is not correct? (1) Bank charges are not zero-rated item. (2)…

A: Taxable income: It is the part of the income on which tax is calculated that is to be paid to…

Q: What are the different types of deposit accounts and loans offered to customers by any one…

A: SOLUTION PRIMARILY , BANKS OFFERS TWO TYPES OF DEPOSIT ACCOUNTS .THESE ARE DEMAND DEPOSIT LIKE…

Q: shadow banking and how does it differ from traditional retail banking? What kind  of threat does…

A: Shadow Banking: Shadow banking refers to bank-like activities that occur outside of the formal or…

Q: overdrafts and overdraft fees

A: A bank is a type of financial institution which is licensed for the purpose of receiving deposits…

Q: Which of these statements about banks is true: i) Banks cannot convert all deposits in the Reserves…

A: Commercial banks is defined as the financial institution, which accepts the deposits, and offers the…

Q: Which of the following is NOT a type of depository institution? O Commercial Banks O Savings and…

A: Those financial institutions that have the authority to obtain the funds in the form of deposits…

Q: How banks safeguard the deposits of customers from financial losses?

A: The banks safeguard the deposits of customers with the help of an independent agency.

Q: Effective crisis management requires a strong bank resolution framework. What are the pros and cons…

A: A strong bank resolution framework will provide banks with  a prudential framework  which will  make…

Q: )Why it important to reconcile the bank statement? b)What are some of the items involved in the…

A: Bank reconciliation statement is the statement which keeps the record of the business transactions…

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: Which of the following is not likely cause of Default? Select one: a.Lack of compliance with loan…

A: The term “Default” in terms of a loan refers to the failure of repayment of the loan by the borrower…

Q: To minimize systemic risk in the banking system, which prudential measure has been put in place in…

A: A breach of this fiduciary responsibility might result in the misbehaving bank being held…