1. Banks regulators monitor banks by focusing on six criteria. Name and explain each of these criterions.
2. What is the principle objective of bank regulation?
3. What are the most common sources of commercial bank funds and the most common uses of these funds?
4. How can a commercial solve temporary deficiency in funds?
5. What is the underlying goal of bank management?
6. What is the difference between a banks liquidity and its capital?
7. What is the difference between a restrictive monetary policy and a stimulative monetary policy? What is the objective of each?

PART II: Solve the following problem

1. The Mwen-Mwen Bank had interest revenues of $160 million for the year ended December 31, 2022 and interest expense of $70 Million. About forty (40) percent of the banks $2 billion assets are rate sensitive, while $1.4 billion of its liabilities are sensitive. Compute the banks net interest margin, Gap, Gap ratio, and interpret these results.
2. The central bank considers certain variables to assess the quality of the loans extended by banks, which it is examining. Name and explain each of these variables?
3. The underlying goal of bank management is to maximize the wealth of the banks shareholders, which implies maximizing the price of the banks stock (if the bank managers to ensure that is publicly traded). At the same time, bank managers desire to be well compensated in order to produce more profits for the shareholders. How do the shareholders monitor apparent conflict to ensure that managerial decision are intended to serve shareholder?

BONUS QUESTION: In at most five (5) sentences, tell me what you have learned in this course and how your experience will shape your current assignment and or career. Were your expectations matched by what you have learned in this course?