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Question 1 a)Explain how banks make lending decisions. (15 Marks) b)Discuss any two models banks use to price their loans. (10 Marks) c)Discuss the two

Question 1

a)Explain how banks make lending decisions. (15 Marks)

b)Discuss any two models banks use to price their loans.(10 Marks)

c)Discuss the two (2) major sources of revenue for banks and give examples of the type of activities which banks undertake in order to raise such revenues.

(10Marks)

d)Explain in detail liabilities and asset side of commercial bank balance sheet.

(15 Marks)

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