Question
Which of the following are types of Liquidity risk?
                     I.       Time risk                    II.       Price risk                   III.       Call risk                  IV.       Funding riskSolution
The liquidity risk in banks manifest in different dimensions: i)             Funding Risk – need to replace net outflows due to unanticipated withdrawal/nonrenewal of deposits (wholesale and retail); ii)            ii) Time Risk - need to compensate for non-receipt of expected inflows of funds, i.e. performing assets turning into non-performing assets; and iii)           Call Risk - due to crystallisation of contingent liabilities and unable to undertake profitable business opportunities when desirable. Price risk is a type of interest rate risk. Price risk occurs when assets are sold before their stated maturities. In the financial market, bond prices and yields are inversely related. The price risk is closely associated with the trading book, which is created for making profit out of short-term movements in interest rates.
A researcher stands at a traffic light and counts the number of cars that make left turns. These findings will be used to determine if an ‘advanced gr...
JIO entered Indian market place with "Unlimited Calling, Text, internet" for free for first three months. This pricing strategy is referred to as:
Considering the concept of a service continuum, how would one characterize a tailored suit?
Tim Casby's sells its ‘Child Smile' cookies and tells customers that all the profits from the sale of these cookies will go to underprivileged kids, T...
Each of the following is an example of a corporate chain EXCEPT:
A marketing strategy is the means by which a marketing goal is to be achieved. Two factors that usually characterizing a marketing strategy are:
Categorizing a group of consumers for soda on the basis of whether they wanted sugar-free and caffeine-free, caffeine-free but with sugar, or regular wi...
A company that experiences truncated future growth when launching a new product, may have failed to initially engage in:
The pair of blue jeans bought by you from a retail store came to you via a(n) ____, which consists of several organizations involved in the process of m...
SBUs with low growth rate and high relative market share are called ________.