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Section There is 1 question in this section. Answer all three sub questions (a,b and c) (30 marks) Question 1 Global Pandemic COVID -19 has

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Section There is 1 question in this section. Answer all three sub questions (a,b and c) (30 marks) Question 1 Global Pandemic COVID -19 has created significant risks for most of the bank all over the world. LR Bank is an international bank operated successfully in Oman for the last 10 years. It became very popular among the corporate and retail clients. Soon after the Pandemic, the Central Bank has announced that the businesses should be given a grace period of 4 months or more to settle their loan repayments. As a result, most of the businesses has not settled their dues as a settlement to the bank instead they deposited the capital amount in the same bank as fixed deposit to earn interest income. Due to this reason, the LR Bank has received a large deposit from corporate and retail clients. The senior level management is very keen in using these amounts in productively to generate better liquidity management to handle the excess amount of deposits received. You are required to answer the following questions based on the above scenario. a. There are three different motives that the bank can utilise the receipt of the deposit. Discuss those three types of motives briefly with suitable examples? (Note: The word count should not be less than 200 words) (15 marks) b. Suggest different methods that the LR Bank could make use of these excess liquidity during this COVID - 19 Pandemic period? (Note: The word count should not be less than 200 words) (15 marks)

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