1. a) Define reserves. Discuss the differences between primary and secondary reserves. 8 b) What are the benefits of E-Banking from consumers' point of view? 4.5 2. a) Define liquidity. Explain various types of Liquidity crisis with example. 4.5 b) "A healthy tradeoff between liquidity and profitability should be maintained to run a healthy bank"explain. 8 3.7) Enlist the features of a bank. 4.5 b) Discuss CAMELS rating as an assessment tool for bank's performance. 8 4. 7) Mr. Jalil is going to buy a piece of land worth $80000. Ms. Borsha, the broker claimed the land will be Worth $95000 after a year. If market interest rate is 8%, is the land worthy of purchase for Mr. Jalil? Prove using PV, FV and NPV method. 9 b) Define perpetuity and show that. PVI/r Where, PV= present value: r= Interest rate; C=C ash flow 3.5 5. Calculate expected rate of return, variance and correlation (with graph) and comment about the two tech companies from the following data: 12.5 6. a) From the following data show that it is all the same to evaluate the net present value of the firm using real or nominal values. Nominal interest rate is 14% and inflation rate is 7%. 8.5 b) Lernic rean inerest rate win an exampie. 4