Question 2

Which of the following are wholesale and which are retail?

(a) Large-scale deposits made by firms at negotiated rates of interest. .............................retail / wholesale

(b) Loans made by high street banks at published rates of interest. ..................................retail / wholesale

(c) Deposits in savings accounts in high street banks. ......................................................retail / wholesale

(d) Deposits in savings accounts in building societies .......................................................retail / wholesale

(e) Large-scale loans to industry syndicated through several banks. ................................retail / wholesale

Question 3

Rank the following assets of a commercial bank in order of decreasing liquidity.

(a) Market loans

(b) Reserves with the Bank of Ghana

(c) Cash

(d) Personal loans

(e) Sale and repurchase agreements (repos)

(f) Mortgages

(g) Government bonds (of from one to five years to maturity)

High liquidity

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Low liquidity