MT KENYA UNIVERSITY DEPARTMENT OF FINANCE & ACCOUNTING P.O. Box 342 THIKA‚ KENYA Email: info@mku.ac.ke Web: www.mku.ac.ke Course code: DBF 121 Course Title: Banking Laws and Practice Instructional materials for distance learning students CONTENTS CONTENTS ........................................................................................................................ ii COURSE OUTLINE ................................................................................................
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matters) Role of Liquidity Liquidity can be defined as 1) the ability of a business to meet obligations without disposing of its fixed assets or 2) the degree to which assets of a company can be easily converted into cash. The evolution of banking has seen their balance sheet composition change. The model changed from one of borrowing at low rates and lending high rates with little interest rate or liquidity risk to one where borrowing in the short end and lending in longer maturities. This
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budget surplus. [10 marks] 3. Suppose that the T-account for The Open Campus National Bank (OCNB) is as follows: Assets Liabilities Reserves $100‚000 Loans 400‚000 Deposits $500‚000 (a) If the central bank requires banks to hold 5% of deposits as reserves‚ how much in excess reserves does OCNB now hold? [5 marks] (b) If OCNB decides to reduce its reserves to only the required amount‚ by how much would the economy’s money supply change? [10 marks] 4. (a) Explain the adjustment process that
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[pic] Assignment #3 Principles of Microeconomics Spring‚ 2011 Due Date: March 16th‚ 2011 Lecturer: juwang Answer All Questions 1. The following questions refer to graphs A and B below. In the graphs‚ Qf represents full-employment output and Qu1 and Qu2 represent less-than-full-employment levels of output. ( 3 Marks) (a) Which of the two graphs best illustrates the Keynesian view of the macroeconomy‚ and which best illustrates the classical view? Explain. (b) When demand shifts
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PROBLEMS 1. The following three one year “discount” loans are available to you: Loan A: $120‚000 at a 7 percent discount rate Loan B: $110‚000 at a 6 percent discount rate Loan C: $130‚000 at a 6.5 percent discount rate a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide. Which loan would provide you with the most upfront money when the loan takes place? Loan A: 120‚000 – 8400 = 111‚600. Loan
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Fully Solved IBPS PO General Awareness Question Paper for Common Written Exam held on 18th September‚ 2011 IBPS had conducted the PO/MT Exam in September 2011 and November 2011 (Supplementary) is which 10 lakh students appeared for the Exam.In this post we are publishing the IBPS PO Question Paper 2011 (General Awareness Section). Candidates appearing for the Upcoming IBPS Exams in 2012 must go through the IBPS General Awareness Questions given below.These questions will give you an idea about
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6-9 Capital Adequacy 6-7 Asset Quality 7 Management 7-8 Earnings 8 Liquidity 8 Sensitivity to Market Risk 9 Assumptions 9 Results of Analysis 9 Conclusion 10 References 11 Appendix 12 Introduction The banking industry has undergone major upheaval in recent years‚ largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions emphasize
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and privatization. All of these steps required decentralization of government assets and financial institutions. One of the most crucial parts of the transition was the decentralization of the banking system‚ which wiped out the centrally planned Soviet and Eastern European societies. Unlike most banking systems in market economies‚ the bank in the centrally planned economies acted as administrative agencies and had almost no common features with any commercial bank. These countries had to accomplish
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stability and control. Therefore there must be constraints on banking activities through legislation and prudential supervision. The main objectives of regulation are: • Preventing initial bank failures and stop the spreading to other banks • Prevent ‘moral hazard’ which is the temptation for banks to take larger risks because they know they are covered. • Depositor protection – ensuring asymmetric information does not occur. Banking Supervision arrangements under the Basel 2 capital accord
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Bank Deposit Contract Reference No: C89364520358 Deposit contract concluded on 20th of January‚ 2013‚ in Skopje between: Stopanska Banka AD – Skopje‚ Head Office‚ Represented by Ana Nikolovska‚ Manager of the Legal Division Address: 11 Oktomvri 7‚ 1000 Skopje‚ Republic of Macedonia Unique Tax Number: 07495305 Unique Identification Number: 92593630 And Name:
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