Assignment (1)
For Instructor’s Use only
| Instructor’s Name: Dr. Mohammed Arshad Khan | |
| Students’ Grade: /15 | Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
- The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
- Students must mention question number clearly in their answer.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO No exceptions.
- All answers must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism.
- Submissions without this cover page will NOT be accepted.
Assignment Question(s): (Marks 5)
- Explain in details about Fair Value versus Risk Partitioning Perspectives on Financial Transactions
2) Users of financial reports must assess banks’ current and expected future reserve and capital levels, because these levels affect the ability of banks to grow. Both thrifts and commercial banks can be either state or federally chartered, in what is referred to as the dual banking system. Explain the dual banking system along with the role of Comptroller of the Currency (COC), Office of Thrift Supervision (OTS) and Federal Deposits Insurance Corporation (FDIC). (Marks 5)
3) Financial Institutions speculate on the yield curve when they invest in financial assets with durations different from those of their financial liabilities. Thrifts bear interest rate risk when their financial assets and liabilities are imperfectly matched on duration. Discuss the interest rate risk of Thrifts with reference to Yield Curve Speculation. (05 Marks )
Answer:
