Question
Which of the following is the risk when a bank fails in
honoring the commitment of payment of deposits to the customers due to inability to meet cash flow obligations?Solution
Liquidity Risk arises when a bank is unable to meet a financial commitment. This may arise due to variety of reasons. The entity may not be able to raise resources at reasonable cost. This may also arise when a bank is not able to exit an investment due to non-availability of counter party in the market resulting in impacting the liquidity of the bank in meeting its commitments.
A sum of ₹8,500 amounts to ₹11,900 in 5 years at simple interest per annum. If the rate of interest is increased by 3%, then the increased amount fo...
Some amount out of Rs. 24000 was lent out at 10% per annum and the rest amount @ 16% per annum and thus in 5 years the total interest from both the amou...
- Anjali invested Rs. 9,150 at a simple interest rate of 4% p.a. for 5 years. If she receives Rs. '2n' in total, what is the product of all digits in 'n'?
The difference between the compound interest, compounded annually and simple interest on Rs. ‘P’ at the rate of 20% p.a. for 2 years, is Rs....
Find the compound Interest on Rs. 8,000 @15 % p.a for 2 years 4 month Compounded annually?
Abhishek invested Rs. 7996.89 in a business for 3.98 months and then left the business. Bhuvan invested Rs. 1998.68 more than Abhishek for (2/3) r...
- An amount becomes Rs. 9,360 in 3 years when invested at simple interest at the rate of r% per annum. If the interest rate had been (r + 4)% per annum, the ...
Simple interest earned on an amount of Rs.1200 at rate of R% per annum after 4 years is Rs.384. Find the simple interest earned on an amount of Rs.1500 ...
- Amit invested Rs. 20,000 at simple interest of 10% p.a. If he withdrew Rs. 4,000 after every one year, then find the total interest earned by Amit at the e...
A invested Rs. ‘x’ in a scheme offering compound interest of 20% p.a. compounded annually. If at the end of 2 years, interest received by A was Rs. ...
