Question: 24. A bank has more rate sensitive assets compared with rate sensitive liabilities. Explain wha t will happen to its net interest margin during a

24. A bank has more rate sensitive assets compared with rate sensitive liabilities. Explain what will happen to its net interest margin during a period of rising interest rates

25. Distinguish between direct and indirect finance.

26. What is off-balance sheet banking? Indicate some of the products of off-balance sheet banking in Ghana.

27. Using any banks financial summary for period of 5 years, calculate the net interest margin (NIM) for the various years and comment on the trends. Also calculate the return on equity and comment on the trends over the years.

28. Central Banks manage the money supply to achieve economic growth, high employment, price level stability, interest rate stability, exchange rate stability among others. Discuss why despite the above, developing countries are faced with problems of lack of growth, price level instability, high unemployment etc.

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