what is MORATORIUM” IN BANKING? explain.

Q: What are the factors that may influence the use of money vs credit cards?

A: There are several factors that influence someone's decision to buy goods or services through money…

Q: What is shadow banking? What are the backstops in shadow banking and traditional banking? Please…

A: Shadow banking is unregulated where the lenders, creditors, brokers, and other financial…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: What are the major risks faced by financial institutions?

A: MAJOR RISKS FACED BY FINANCIAL INSTITUTIONS ARE : 1. INTEREST RATE RISK  2. CREDIT RISK 3. LIQUIDITY…

Q: commercial

A: Commercial banks are defined as financial institutions who accept deposits from the public & use…

Q: What are the main sources of funding for commercial banks?

A: Banks are a financial institution that receives money from customers and makes a loan to the…

Q: Bank capital has no effect on the liquidity activities of banks. Do you agree and why

A: Introduction: Liquidity management of banks are nothing but estimating banks often on their…

Q: Is Modern banks are both financial intermediaries and risk intermediaries? And why

A: Yes, modern banks are both financial intermediaries and risk intermediaries since they exist among…

Q: What is the term of interest on bank overdraft?

A: On basis of creditworthiness, a bank allows a person to draw excess money from his account…

Q: Explain what the "Avoids" are when developing Key Risk Indicators for commercial banks.?

A: The key risk indicators are the quantitative measures that are used by commercial banks to evaluate…

Q: efly explain how banks can optimize their position through managing their use of currencies?

A: Step 1   Significant restructuring of the treasury structure and the way companies interact with…

Q: What is the link between securitization and the economic function of financial intermediaries? What…

A: Introduction: Securitization combines diverse financial assets into a single instrument that is then…

Q: What makes the banking industry a specialized industry?

A: Solution:- Introduction:- Accounting means art of recording, classification, measuring transactions…

Q: pros and cons of diversification in banking.

A: Introduction : The diversification of banking refers to the strategic diversification of banking…

Q: Why Central banks requires banks to hold that amount of money?  explain ?

A: Banks accept public deposits and lend that amount as loan to individual and companies at a higher…

Q: what are the two most differences between the bank side and the book side of a bank reconciliation?

A: Bank reconciliation is a statement which explains the reasons of difference between the balance as…

Q: Explain the concept of liquidity risk in banking. Why is it important to control liquidity risk?

A: Liquidity refers to the ability of a bank to meet its cash and collateral obligations without…

Q: Securitization changes the systemic (system-wide) risksin the regulated and unregulated “shadow”…

A: Securities refer to the financial instruments holding monetary value representing ownership in a…

Q: WHAT ARE THE TYPES OF BANK MANAGEMENT?

A: Bank management is used to govern the different concerns that are associated with the bank to…

Q: )What is the role of a central bank? b)Why is it argued that a central bank should be independent…

A: A central bank is a financial institution having control over the production and distribution of…

Q: Bank capital has no effect on the liquidity management activities of banks. Do you agree and why?

A: Introduction: Liquidity management of banks are nothing but estimating banks often on their…

Q: What is bank reconciwhliation

A: Bank Reconciliation Statement:  Bank statement is generally provided by the bank. Apart from bank…

Q: Do U.S. GAAP and IFRS differ in how bank overdrafts are treated? Explain.

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: Why has the trend in bank supervision moved awayfrom a focus on capital requirements to a focus on…

A: Bank supervision is generally conducted in order to ensure that the banking operations are conducted…

Q: What is a central bank,

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What are nonconventional monetary tools used by central banks?

A: Monetary policy can be conventional and unconventional which are used by the central banks for…

Q: What is bank resolution?

A: Resolution takes place on the identical time whilst the authorities decides that the economic…

Q: Which do you prefer? the traditional way of transacting with banks and other financial institutions…

A: Online or e banking is where the users make all the financial transactions via internet. they offer…

Q: What information does a bank need, and the information value?

A: A Bank is a financial body primarily dealing with accepting of money from people and advancing loans…

Q: What would be a sign of a shortage in financial markets?

A: The financial market refers to the market in which people trade financial securities like bonds,…

Q: How does the financial system function and why does a financial crisis occur ?

A: Financial system is a full mechanism of movement of funds. Investors invest their money in firms and…

Q: risk transformtion in banks

A: Risk is a term that is used for defining the uncertainty arising in the future from changes in…

Q: What is a bank reconciliation?

A: The statement of Bank reconciliation is a report that matches the money balance on an organization's…

Q: What are the risk associated with banking activities?

A: Bank's major activity involves collection of funds and lending credit. These activities involve huge…

Q: Explain the difference between the primary and secondary markets. What roles do banks play in these…

A: capital market of the financial system rises capital from shares, bonds, and other investments to…

Q: unctions of the Federal Reserve Banking system. Of the functions which is the most critical? Which…

A: Functions of federal reserve banking system : 1. managing the country's monetary policy 2.…

Q: What are conventional monetary tools used by central banks?

A: The three conventional monetary policy tools which are used by the central banks are the discount…

Q: Why regulations are important for Banks.

A: The most important rationale for regulation in banking industry is to concerns over the stability…

Q: Why is the bank important to our society?

A: The bank is highly important to our society. It should be noted that banks, on an overall basis, are…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.