Deadline: 29/10/2022 @ 23:59
|Course Name: Bank Management||Student’s Name:|
|Course Code: FIN401||Student’s ID Number:|
|Academic Year: 1443/1444 H, 1st Term|
For Instructor’s Use only
|Students’ Grade: /10||Level of Marks: High/Middle/Low|
Instructions – PLEASE READ THEM CAREFULLY
- This assignment is an individual
- The due date for Assignment 2 is 29/10/2022
- The Assignment must be submitted only in WORD format via the allocated folder.
- Assignments submitted through email will not be accepted.
- Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling in your information on the cover page.
- Students must mention the question number clearly in their answers.
- Late submission will NOT be accepted.
- Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
- All answers must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions [10 Marks]
- What are the different types of risks the banks and other financial institutions are exposed to? [2 Marks]
- What are the Asset-Liability Management Strategies? Explain. [2 Marks]
- Explain the loanable fund theory of Interest Rate Determination. [2 Marks]
- What are the different types of derivatives? Take an example and explain Interest rate swaps. [2 Marks]
- Calculate the interest-sensitive GAP (IS GAP) and Relative IS GAP ratio for a financial institution if interest-sensitive assets (ISA) are $100 million and interest-sensitive liabilities (ISL) are $125 million. Is that firm an Asset sensitive? Explain. [2 Marks]