What is the risk if a bank does not diversify its loans?
Question:
What is the risk if a bank does not diversify its loans?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
If a bank does not diversify its loans and instead concentrates its lending portfolio in a narrow range of assets or industries it can expose itself t...View the full answer
Answered By
Shristi Singh
A freshman year metallurgy and material science student in India.
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The right shares can help you grow your wealth. So take your time, watch for economic and market changes, and diversify across different sectors. Like any investment, there is risk involved. So be...
-
CountrySide Bank uses the Moodys Analytics Portfolio Manager model to evaluate the risk-return characteristics of the loans in its portfolio. A specific $10 million loan earns 2 percent per year in...
-
Suppose that ABC bank and DEF bank have the following assets and liabilities: ABC bank Assets $200 million five-year floating-rate bonds (Libor + 7%) (Interest rate is adjusted annually) Liabilities...
-
Show by approximating with integrals that the number of distinct triples of integers between 0 and \(n\) is about \(n^{3} / 6\).
-
Neville Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000 and have an estimated useful life of 5 years. It will be sold for $70,000...
-
The 2013 balance sheet for Hallbrook Industries, Inc., is shown below. The company's 2013 income statement reported the following amounts ($ in 000s): Net sales ......................... $ 4600...
-
10.1 Maurice prepares accounts to 31 March each year. The written down value of his main pool at 31 March 2009 was 10,300. There was no special rate pool. His purchases and sales of plant and...
-
The intangible assets section of the balance sheet for Vincent Company at December 31, 2012, is presented here. Patents ($70,000 cost less $7,000 amortization) .... $63,000 Copyrights ($48,000 cost...
-
Write and explain accounting policies used in preparation of financial statement for any Ghanaian organization
-
The Bring it Home Feature discusses the use of cowrie shells as money. Although we no longer use cowrie shells as money, do you think other forms of commodity monies are possible? What role might...
-
What is the asset-liability time mismatch that all banks face?
-
A sample with a mean of M 5 62 and a standard deviation of s 5 5 is transformed into a standardized distribution with m 5 50 and s 510. Find the new, standardized score for each of the following...
-
I need help for an assignment of a review on research on Virtual Education on study motivation and academic performance in university students. I am attaching a research article from a magazine to...
-
Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this small...
-
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Ramirez Company installs a computerized...
-
Reproduced below from Farthington Supply s accounting records is the accounts receivable subledger along with selected general ledger accounts. General Ledger Accounts Receivable Dec. 3 1 / 2 2...
-
James A. and Ella R. Polk, ages 70 and 65, respectively, are retired physicians who live at 3319 Taylorcrest Street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and...
-
Let A and B m ( n matrices that are row equivalent. (a) Prove that rank A = rank B. (b) Prove that for x in Rn, Ax = 0 if and only if Bx = 0.
-
As water moves through the hydrologic cycle, water quality changes are common because of natural phenomena or anthropogenic pollution. Using Figure 11.1, describe how water-quality changes occur...
-
Time management is an important skill that will impact your future as a manager. You can categorize the time that you spend as either required or discretionary. You can assess your time management...
-
Here are three job titles. Rank which job would devote the most of its time to conceptual, human, and technical skills. a. Vice president of finance at a Fortune 100 company b. Coding for a video...
-
What are the characteristics that effective managers display?
-
Which of the following requires filing a gift tax return if the transfer exceeds the available annual gift tax exclusion?\ a.Medical expenses paid directly to a physician on behalf of an individual...
-
Toby would like to purchase partly paid shares in a mining company. He is confused as to the differences between mining companies whose name ends with Pty Ltd from a mining company whose name ends...
-
how many fist bumps do i get
Study smarter with the SolutionInn App