Finance Question
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- Which act/s in the US Banking Sector supports the lifeline banking service? [1Mark]
- Explain the different services that are covered under Lifeline Banking for low-income people.[2 Marks]
- What are the different non-deposit sources of funds for banks? [1Mark]
- Explain the risks for the banks especially associated with non-deposit sources of funds.[2 Marks]
- What is the difference between real and nominal interest rates? [1Mark]
- Explain the concept of Interest Rate Determination in the light of the Loanable Fund Theory. [2 Marks]
- What are financial derivatives? [1Mark]
- Explain the process of a financial Put Option with the help of an example. [2 Marks]
- [1Mark]
- interest-sensitive assets (ISA) and interest-sensitive liabilities (ISL) of a financial firm are $125 million & $100 million respectively, what will be its interest-sensitive GAP (IS GAP)? Calculate the Relative IS GAP ratio for the same financial institution and comment, Is that firm Asset sensitive? [2 Marks]