Question Description

I’m working on a business project and need support to help me learn.

Which act/s in the US Banking Sector supports the lifeline banking service? 

Explain the different services that are covered under Lifeline Banking for low-income people.

What are the different non-deposit sources of funds for banks? 

  • Explain the risks for the banks especially associated with non-deposit sources of funds.

What is the difference between real and nominal interest rates? 

  • Explain the concept of Interest Rate Determination in the light of the Loanable Fund Theory. 

What are financial derivatives?  

  • Explain the process of a financial Put Option with the help of an example. 
  • What is the difference between an Asset sensitive and a Liability sensitive firm? 

If interest-sensitive assets (ISA) and interest-sensitive liabilities (ISL) of a financial firm are $125 million & $100 million respectively, what will be its interest-sensitive GAP (IS GAP)? Calculate the Relative IS GAP ratio for the same financial institution and comment, Is that firm Asset sensitive?