Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition)

Chapter 9

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Frequent borrowing from the central bank can make ... more

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Reserves consist of physical cash kept by the ... more

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The bank should borrow the required amount of ... more

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The bank would prefer the balance sheet showing ... more

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Yes, holding reserves in large amounts would be ... more

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The borrower should not be turned down because the... more

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The banks need to either reduce their capital by ... more

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The bank can adopt any of the strategies mentioned... more

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The return on equity, also called ROE, indicates ... more

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The value of ROE will fall to half the rate. ; The... more

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The benefit is that a larger capital reduces the ... more

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The bankers tend to be nosy because in order to ... more

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Banks insist on maintaining the compensating ... more

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No, because a well-functioning bank could mean ... more

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False, because if a bank has attained ... more

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The banker will choose short-term loans. ; The ... more

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False. This is because a bank manager will follow ... more

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The non-interest income decreased due to the ... more

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Bank F’s deposits and reserves will fall, whereas ... more

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AssetsLiabilitiesReserves        Checkable ... more

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; The amount of reserves required to be ... more

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million ; The cost of holding excess reserves is ... more

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Bank B is in a better position to deal with ... more

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Net worth increases by billion and the interest ... more

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The change in bank profits will increase. The risk... more

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The share of loans in the portfolio of the bank of... more

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