Question
A bank borrows Rs.50 crore from call money market on a
daily basis and uses that to give a loan of Rs.30 crore to a AAA rated client (i.e. zero default probability over one year) at a rate of interest 2.50% over call money rate to be reset on a daily basis. The bank may see variation in its net interest income over 10 days in respect of this asset because the transaction is associated with _______Solution
A gap or mismatch risk arises from holding assets and liabilities and off-balance sheet items with different principal amounts, maturity dates or repricing dates, thereby creating exposure to unexpected changes in the level of market interest rates.
IOSCO's core objective is to:
As per the new Monetary Aggregates based on the recommendation of the Dr. Y.V. Reddy Committee, the domestic sectors are divided into which of the fol...
C= 0.8(1-t)Y , t=0.25, I=200 and G=800. Calculate the change in output when tax rate increases to 0.50
Using the following table. Find the profit-maximizing output when price is Rs 25:
Whenrxy>0,thenbyxandbxyareboth:
...Which of the following is a primary objective of the 'Fiscal Responsibility and Budget Management (FRBM) Act' in India?
If positive income effect is less than the substitution effect: the product will be
If quantities of all commodities change in the same proportion then
What is the minimum asset size required for a company to be classified as a Core Investment Company (CIC) in India?
