A rise in interest rate is negative for investment banks because:

	a.	It reduces the value of fixed income securities in its trading book inventory.
	b.	It increases the value of fixed income securities in its trading book inventory.
	c.	It reduces the banks cost of borrowing in volatile, global wholesale funding markets.
	d.	A & B
	e.	A, B & C

J.P. Morgan (JPM) shares have fallen from 170 to 111 in the last 12 months. Even though it is Americas largest and best managed money center bank, its valuation multiple is now only 8 times earnings compared to the 16 times earnings of the stock market. Which of the following factors are not responsible for the banks poor performance on the New York Stock Exchange?

	a.	Recession risk means higher default rates among the banks corporate borrowers.
	b.	J.P. Morgan operates its regional office for the Gulf in Dubais DIFC.
	c.	The IPO window has closed down and few mergers are executed in a falling/volatile market. This is very negative for J.P. Morgans investment banking fees in 2022/23.
	d.	J.P. Morgan has more than a trillion dollars of treasury and mortgage bonds in its trading book inventory. The sharp rise in interest rates due to Fed monetary tightening has led to a steep fall in the prices of the bonds it owns.
	e.	J.P. Morgan is a major lender in both Europe and China which face multiple financial crises.

Which of the following companies was the master developer of the Palm Jumeirah?

	a.	Emaar Properties
	b.	Nakheel
	c.	Meraas
	d.	Damac Properties
	e.	Danube