(Best Essay Writers) the balance sheet must change? d) Looking at the bank’s assets, which do you think are the most risky?
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| value of the bank’s ‘equity’? Express it as a fraction of total assets. c) Suppose that the value of ‘money market loans’ falls by 10 per cent. What else in the balance sheet must change? d) Looking at the bank’s assets, which do you think are the most |
Look at the balance sheet provided below and: a) Identify the bank’s ‘reserves’ and deposits and calculate reserves as a ratio to deposits. b) What is the value of the bank’s ‘equity’? Express it as a fraction of total assets. c) Suppose that the value of ‘money market loans’ falls by 10 per cent. What else in the balance sheet must change? d) Looking at the bank’s assets, which do you think are the most risky? Why? £mn Explain the main risks to which banking activity is subject, and outline the steps which banks can take to minimise these risks. The word limit does not include graphs and bibliography.
