1. When confronted with extremely high non-interest expenses management's first compulsion is to cut cost as an expense reduction strategy. Analyze the advantages and disadvantages of expense reduction, as opposed to revenue enhancement and contribution growth strategies. (9 marks) 2. Explain why it is important that a bank maintains an investment portfolio and briefly discuss three impacts that this has. ((6 marks) 3. Discuss the need for capital in financial institutions? (10 Marks)