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Answer the following questions ( submit in a Word or PDF , format ) : What are four major sources of funds for banks? What

Answer the following questions (submit in a Word or PDF, format):
What are four major sources of funds for banks? What alternatives does a bank have if it needs temporary funds? What is the most common reason that banks issue bonds?
Explain the use of the federal funds market in facilitating bank operations.
Describe the process of borrowing from the Federal Reserve. What rate is charged, and who sets it? Why do banks commonly borrow in the federal funds market rather than through the Federal Reserve?
Why do banks invest in securities, even though loans typically generate a higher return? How does a bank decide the appropriate percentage of funds that should be allocated to each type of asset? Explain.
Explain the dilemma faced by banks when determining the optimal amount of capital to hold. A banks capital is less than 10 percent of its assets.
Briefly describe the Glass-Steagall Act. Then explain how the related regulations have changed.
Explain how the CAMELS ratings are used.
Explain how the uniform capital requirements can discourage banks from taking excessive risk.
Explain how the uniform capital requirements can discourage banks from taking excessive risk.
What is accomplished when a bank integrates its liability management with its asset management?
How do banks resolve illiquidity problems?
If a bank is very uncertain about future interest rates, how might it insulate its future performance from future interest rate movements?
What is a banks gap, and what does it attempt to determine? Interpret a negative gap. What are some limitations of measuring a banks gap?
How do banks use duration analysis?
How can gross interest income rise, while the net interest margin remains somewhat stable for a particular bank?
What are likely reasons for weak bank performance?

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