Please help, i have answered few and some are wrong, just want to prep myself up for Exams. Thank you! Please try to answer all of them and not just 1 thank you.
Which of the following statements about private banking is true? Review Later Private banking refers to banking services provided to small businesses which is owner-operated and have very simple banking needs. Private banking is often provided on a personal basis through a dedicated relationship manager. Private banking provides products and services such as chequing/checking and savings accounts and personal loans to all individual consumers. Private banking focuses on financial transactions that help clients access different markets. Identify the appropriate type of financial institutions for each description below. A. Community Banks Full-service banks that offer retail banking, commercial banking, and investment banking services to any potential client B. Large Banks C. Online Banks Financial institutions that serve a specific demographic and are owned by members D. Universal Banks E. Investment Banks Banks that focus on serving individual consumers and owner- operated small companies, and tend to focus on their immediate community F. Credit Unions Banks that offer retail and small business banking services through online platforms Banks that focus on helping clients access capital markets and raise capital Banks that focus on retail banking and commercial banking services and tend to have an international reach, with their main operations based in their home market Match the correct description to each of the financial institution categories. Review Later Central Banks A. Work with small, medium, and large businesses to serve their financial needs by offering services such as business loans and trade finance D Retail Banks A Commercial Banks B. Operate in the capital markets to help clients raise capital through underwriting and issuance of securities B Investment Banks C. Oversee and manage all the banks in their respective country and set monetary policy D. Offer products and services to individual consumers including chequing/checking and savings accounts, loans, mortgages, and credit cards Match the correct descriptions of business, commercial, and corporate banking. Review Later Business Banking Commercial Banking A. Serves medium-sized business with up to 500 employees and multiple operating locations B. Serves owner-operated businesses with an annual revenue of up to $5 million and have a need for loans of less than $1 million Corporate Banking C. Serve businesses with over $100 million in revenue that are growing through mergers and acquisitions or moving into the publicly traded space Mr. Sampson has $2 million in cash sitting in an operating account and is looking to invest in the stock market and earn profits on a portfolio of equities. He is most likely to seek what service? Commercial banking Private banking Retail banking Investment banking Bulge bracket refers to: Re Credit-related advisory services provided to corporate clients Investment banking services provided to multinational corporates in dealing with very large financial transactions Investment banking services provided to a specific type of business Business banking service provided to support small businesses' financing needs Technology Inc. is a software company based in the United States, with over 600 employees in 10 locations across the country. The company has recently signed a EUR 2 million contract with a European supplier and is looking for foreign exchange service to help facilitate the transaction. This is an example of services which would be provided in: Business Banking Commercial Banking Corporate Banking Retail Banking Which of the following items is NOT found on the asset side of a bank's balance sheet? Deposits Trading assets Loans Other assets Given the following information on a bank's balance sheet, calculate the net interest income. Yield $MM 3,600 880 Assets Loans to Customers Trading Assets Deposits with Banks Property Total Assets Yield Liabilities & Equity 4.8% Client Deposits 3.1% Trading Liabilities 2.5% Long-term Debt Equity Total L&E $MM 2,950 1,730 600 2.0% 2.5% 5.0% 500 470 170 5,450 5,450 $12.50MM $212.58MM $80.33MM $172.80MM Which of the following formulas is correct? ROE = (Profit After Tax / Current Assets) x (Current Assets / Equity) ROE = (Gross Profit / Total Assets) x (Total Assets / Equity) ROE = (Profit After Tax / Total Assets) x (Total Assets / Equity) ROE = (Gross Profit / Current Assets) x (Current Assets / Equity) Given the following balance sheet structures of two companies, what is each company's ROE and which company has the higher ROE figure. Assets Return Debt Cost Equity 500 3.5% Company A Company B 1,250 1,250 750 680 2.0% 2.0% 3.5% 570 Company B; 5.93% Company A; 5.29% Company B; 5.60% Company A; 5.75% Calculate the operating efficiency ratio using the following information. $MM Interest Income / Expense Net Interest Income 4,680 Bank Salaries Travel and Meals Expense Rent and Utilities 1,275 320 1,650 67.4% 69.3% 65.7% 62.5% Which of the following statements about asset-liability matching (ALM) is NOT true? Review Later ALM requires investing, buying, selling, and allocating a bank's assets to cover its liabilities when needed. Proper ALM minimizes the interest rate risk and liquidity risk within a bank. In ALM, treasury managers need to project the timing of cash outflows and make sure there is sufficient income to meet any cash needs. ALM is the practice of ensuring there are equal amounts of assets and liabilities on a bank's balance sheet. Which of the following are the two steps in the securitization process? Review Later (1) The bank sells its liquid assets to third party investors in exchange for cash and invests the cash for a return; (2) in one year's time, the bank earns a return on the invested cash and purchases back the assets. (1) The bank purchases assets from third parties with an agreement that the sellers will buy back the assets at expiration date; (2) the bank sells the assets back to the original sellers at the agreed price at expiration. (1) The bank sells multiple individual assets at their respective returns as a bundle to third party investors; (2) the investors bundle these assets into a single compound asset and resell it to other market buyers. (1) The bank combines multiple assets into a single compound asset and determines the return by taking the weighted average of the return offered by each individual asset; (2) the compound asset is sold as securities to third party investors
