Banking Questions and Answers March 22, 2020

India has one of the lowest insurance penetration rates in the world. Given this fact, if you were to take over as the CEO of a brand new private sector Insurance company WeEnsureYou that is about to commence its operations Shortly. Present an article in front of the board members on the future of the health insurance market in India and how this

Kiran is appointed as a Life Insurance Agent in a renowned Insurance company. In order to acquire and expand her client base she is required to prepare a presentation on the needs for buying the life insurance policy. Discuss the Needs for buying the life Insurance Plan in her presentation. The answer should be a min of 800 Words. Or else the

Shyama after completing her MBA from a renowned college got placed as an assistant manager in a Risk Management Department of an Insurance firm. a. Shyamas manager ask her to give a short presentation on the concept of Risk Management. The answer should be a min of 400 Words. Or else the university will not consider it.

3. Shyama after completing her MBA from a renowned college got placed as an assistant manager in a Risk Management Department of an Insurance firm. b. She is required to discuss the various techniques of Risk Management. Help Shyama with the same. (5 Marks) The answer should be a min of 400 Words. Or else the university will not consider it.

1. Sundarajan Pvt.Ltd., Bangalore based company are engaged in exporting seafood to various countries. They entered a contract with Japanese Company, Ziomei Pvt Limited for the exporting cuttlefish. Ziomei Pvt Limited asked XYZ Limited to issue the letter of credit. Sundarajan &lsquos owner doesn't have many ideas on the letter of credit. He

You are an operational trainer in a bank. You are asked to prepare a presentation on the various types of fund based credit facility of a bank. Describe the same. The answer should be a min of 800 Words. Or else the university will not consider it.

3. The Basel Accords primarily focuses on prudential norms for bank capital under the aegis of which banks are required to ensure adequate capital to cover losses on account of significant risks in their business. In regard to the above statement answer the below questions. a. Elaborate on Basel I, Basel II, Basel III. The answer should be a min

The Basel Accords primarily focuses on prudential norms for bank capital under the aegis of which banks are required to ensure adequate capital to cover losses on account of significant risks in their business. In regard to the above statement answer the below questions. b. Highlight the significance of Basel III in context to Indian banks The

Christian purchases a Printing Press for his printing company; using the Installment Buying method, the price tag on the press is $22,750 with sales tax of 8%. The press was advertised as add-on-interest of 6% for 5 years. Find the total cost with tax and amount he would pay monthly for the printing press :

Frusciante, Inc., has 290,000 outstanding bonds. The bonds have a face value of $ 1,000, a coupon rate of 7 percent paid semi-annually and 8 years to maturity. The current YTM of bonds is 7.5 percent. The company also has 10 million shares outstanding with a market price of $ 23 per share. What is the market value of the company?

The voltage drops across three components, when connected in series across an ac supply, are V180sin314t volts V120sin(314t13) volts V60sin(314t2) volts Sketch the waveform of V, V2 and V3 in a same axis to illustrate their phase relationship. Then, determine with the aid of a phasor diagram a. The voltage of the supply in trigonometric form b.

A $1,000 bond had a coupon rate of 5.20% with interest paid semi-annually. Ian purchased this bond when there were 9 years left to maturity and when the market interest rate was 6.80% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 3.90% compounded semi-annually. a. Calculate the purchase

A savings banks weighted average asset duration is 15 years. Its total liabilities amount to $950 million, while its assets total 1 billion dollars. What is the dollar-weighted duration of the banks liability portfolio if it has zero leverage adjusted duration gap

Eastern Bank holds assets and liabilities whose average durations and dollar amounts are as .7 shown in this table Avg. Duration(yrs) S Amount Asset and Liability Items Investment Grade Bonds 3.00 Commercial Loans 75.00 15.00 500.00 350.00 6.00 Consumer Loans 450.00 250.00 2.10 Deposits Nondeposit Borrowings 0.35 a What is the weighted average

What is the benefit of the deposit rules for nonagriicultural employers. What is your opinion on the rules.

Explain duration GAP analysis in banks. Calculate the duration Gap of the following excerpts from the balance sheet of a bank. Also calculate the impact on the equity of the bank in the different interest rates scenarios. Balance Sheet for Hypothetical Bank Particulars Assets Duration Liabilities Duration Current Current Assets 1000 7 years

Case Analysis Streamlining the Refinancing Process First National Bank has been swamped with refinancing requests this year. To handle the increased volume, it divided the process into five distinct stages and created departments for each stage. The process begins with a customer completing a loan application for a loan agent. The loan agent

Briefly discuss the importance and strategies of protecting cash after collection for revenue control. (20)

A recent survey of 50 executives who were laid off during a recent recession revealed it took a mean of 26 weeks for them to find another position. The standard deviation of the sample was 6.2 weeks. Construct a 95 percent confidence interval for the population mean.

Shanti, owner of a Universal Life (UL) policy, has been very pleased with the performance of her investment account. In fact, 30 days ago the policy failed the Maximum Tax Actuarial Reserve (MTAR) test. Which of the following remedies would the insurance company implement in order to ensure that the policy remains exempt from annual accrual 17 O

After taxes, Xue clears 6,400 in income each month. Her mortgage is currently 350,000 and her monthly mortgage payment is 2.200. Xue has decided to purchase life insurance and she asks her insurance agent, Cinzia, to determine the appropriate amount, accounting for inflation. Assuming an annual investment return of 4.5 and an average annual rate

View Summary allows you to view your answer choices and those you marked for review. Submit Now submits your answer choices for grading. Close exits the exam. Hannah recently purchased a 100,000 term insurance policy and her policy will also allow her to increase her coverage by 10,000 each year up to a maximum of an additional 200,000 of

Bill seeks your advice regarding his insurance coverage. Currently, Bill owns a participating whole life policy with a cash surrender value (CSV) of 153,000 and a death benefit of 450,000. The annual premium for Bills policy is 17.000. Unfortunately, Bill has suffered a considerable decline in health and is permanently unable to continue working

21 O Xavier owns a 300,000 whole life policy that has a current cash surrender value (CSV) of 76,325 and an outsanding policy loan of 60,000. The loan carries an interest rate of 4, compounded annually. The loan was taken out years ago and after the interest payment that he made in the first year, Xavier has not made any subsequent interest

Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an aftertax income of 3,800 per month, her rent is 1,200, and her other expenses total 1,500 per month. Trong calculates how much life insurance Layla needs using the income replacement approach, adjusted for taxes. Assuming an annual investment return of 5 and

Tai, age 35, recently purchased a new home. The purchase price was 470,000 and his monthly mortgage payment is 2.180. Property tax is 2,175 annually and water tax is 380 annually. Tai spends around 240 per monith on utifities, 24 per month for his gym membership, about 150 per week on groceries, and another 80 per week eating out at restaurants.

Thanh was recently diagnosed with an invasive form of pancreatic cancer and is expected to live only 6 months. Thanhs insurance policy has a built in terminal illness (TI) supplementary benefit. Which of the following correctly describes a feature of the TI supplementary benefit it is paid to the beneficiary 26 Oa) Ob) it is received tax free Oc)

What deposits made at the beginning of each month will accumulate to $120,000 at 8% compounded semi-annually at the end of 10 year?

Annie invested 5,000 in a segregated fund in a nonregistered account. At that time, the basis of each unit was worth 10. At the end of the year, the fund made an allocation of 300 to Annies policy and the fund had a net asset value per unit of 13. Annie still owns the fund and the allocation was reported on a tax slip as interest income. Annies

10 0 Angelo has a Registered Retirement Savings Plan (RRSP) contribution limit of 8,500 for the current year. His wife, Adriana, has an RRSP contribution limit of 11,000 for the current year. Both Angelo and Adriana would like to contribute to their RRSPS this year. When they ask you about the rules regarding their RRSP contributions, which of the

On October 1, 2014, Mikhail purchases a nonregistered segregated fund contract for 55,000. The fund has 75 death and maturity guarantees. On Feb 1, 2015, when the fund value is 57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is 42,500, Which of the following statements about Mikhails fund is CORRECT If Mikhail

Oa) Ob) Oc) Od) Enrique is preparing for retirement and he will be eligible for a Canada Pension Plan (CPP) retirement benefit of 800 per month at age 65. Which of the following statements about Enriques CPP benefits is CORRECT Enrique will receive 684.80 per month if he begins receiving CPP at age 63. Enrique will receive 972.80 per month if he

Bijay, age 65, receives Old Age Security (OAS) payments and has a total income of 6,000. His wife Raveena, age 66, receives Canada Pension Plan (CPP) retirement benefits, OAS, Guaranteed Income Supplement (GIS) benefit payments, and payments from her employer registered pension plan. Raveenas combined income is 23,000. She has an RRSP contribution

On October 1, 2014, Mikhail purchases a nonregistered segregated fund contract for 55,000. The fund has 75 death and maturity guarantees. On Feb 1, 2015, when the fund value is 57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is 42,500. Which of the following statements about Mikhails fund is CORRECT If Mikhail

All else being equal in terms of asset class, types of assets within the portfolio (e.g. equities), etc., which of the following investments will have the LOWEST management expense ratio (MER) 12 Oa) segregated funds Ob) mutual funds Oc) Od) equity funds exchangetraded funds

Bonnie is an insurance agent and her new client, Shlomi, would like to invest in a segregated fund. Bonnie creates an investor profile for Shlomi and collects various documents from him during the process. Which of the following documents would be most useful in helping to determine Shlomis investment experience and knowledge 13 0 Oa) Ob) income

Trina purchases a US government bond, denominated in US dollars. The bond is issued in Canada and she purchases it through her investment dealer in Toronto, Ontario. The bond has a 25,000 face value and a 3 coupon rate. Which of the following statements about Trinas investment are CORRECT i. Trina owns a Eurobond. il. Trina will receive semiannual

Annie invested 5,000 in a segregated fund in a nonregistered account. At that time, the basis of each unit was worth 10. At the end of the year, the fund made an allocation of 300 to Annies policy and the fund had a net asset value per unit of 13. Annie still owns the fund and the allocation was reported on a tax slip as interest income. Annies

You are assessing what your client Paulos income needs will be at retirement and you are calculating the benefit that he will receive from the Old Age Security (OAS). Paulo will earn net income of 78,000.00. If the current threshold for the OAS is 71,592.00 and the clawback is 15, what would Paulos repayment be Oa) Ob) Oc) Ocd) 961.20 6,408.00

Drago wants to start investing and he meets with his agent, Christian. Drago is surprised at the number of questions Christian asks about his finances. Christian learns that Drago takes home 4,500 a month. After mortgage payments. food and clothing expenses, utilities, credit card payments, and childcare expenses, combined monthly expenses are

e CA Jeraud plans to purchase a vehicle 3 years from now. He anticipates the vehicle will cost 20,000 at the time of purchase. Assuming Jeraud can eam an average annual rate of return of 5.5, how much should Jeraud invest today to ensure he will have the necessary funds available to purchase the vehicle in 3 years 24 Oa) Ob) 16,299 17,032 17,969

Connie opens a taxfree savings account (TFSA) and invests 10,000 in the Skymark Balanced Segregated Fund. The fund has a 75 maturity guarantee, a 100 death benefit guarantee, and is purchased with a frontend load (FEL) of 4. Connie names her husband Khaled as beneficiary. The Skymark Balanced Segregated Fund declines in value to 9,000. Which of

Penny receives a bonus from work and meets with her insurance agent, Leonard, to discuss her options for investing Penny has already contributed the maximum amounts to her Registered Retirement Savings Plan (RRSP) and TaxFree Savings Account (TFSA). Penny determines that she will need to inivest her bonus proceeds into a nonregistered account,

Dominique, age 72, has a Registered Retirement Incorne Fund (RRIF) with a balance of 124,000o. Her minimum withdrawal for the current year is 56,700. Dominique has recently suffered health problems and needs to withdraw additional funds from her RRIF account. Which of the following statements about Dominiques RRIF withdrawal is 30 CORRECT Oa) Ob)

Enrique is preparing for retirement and he will be eligible for a Canada Pension Plan (CPP) retirement benefit of 800 per month at age 65. Which of the following statements about Enriques CPP benefits is CORRECT Enrique will receive 684.80 per month if he begins receiving CPP at age 63. Oa) Ob) Enrique will receive 972.80 per month if he begins

Nathan has just recently retired and is interested in purchasing an annuity to enhance his income. Since he also has several sources of pension income from both government and employer pension plans, Nathan is concerned about his overall income and marginal tax rate. Nathan indicates that he doesnt like surprises or unknowns and he wants to ensure

On October 1, 2014, Mikhail purchases a nonregistered segregated fund contract for 55,000. The fund has 75 death and maturity guarantees. On Feb 1, 2015, when the fund value is 57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is 42,500. Which of the following statements about Mikhals fund is CORRECT If Mikhail

Bannie is an insurance agent and her new client, Shlomi, would like to invest in a segregated fund. Bonnie creates an investor profile for Shlomi and collects various documents from him during the process. Which of the following documents would be most useful in helping to determine Shlomis investment experience and knowledge 13 Oa) Ob) Oci Od)

Close exits the exam. Jack and Marta are a married couple planning their retirement. Jack has a higher marginal tax rate (MTR) and is a member of his employers pension plan. Marta has a lower MTR and a small registered retirement savings plan (RRSP). They want to transfer the lumpsum in Jacks pension to an annuity which will provide income to

Trevor contacts Shanae, his insurance agent, for advice regarding his universal life (UL) insurance policy. Trevor wife, Maria, is indicated as revocable beneficiary on the plan. The policy has a face value of $250,000 and an account value of $35,000. Trevor asks Shanae which of the following events could have potential tax consequences as either

Chong is starting a winery business in his home town of Kelowna, British Columbia. Chong needs money to get started. He has a permanent policy on his own life with a cash surrender value (CSV) of $1 million and is considering using the CSV to secure a loan, as requested by his lender. Chong only needs to assign a portion of the policy and he is

Your clients Aiden, 35, and Delora, 37, have had many life changes in the past year. Aiden secured a new job and a large raise. They welcomed their second child and now have two children under four years old. To accommodate the baby, they renovated and refinanced their existing mortgage. Delora will be a stay at home mom and no longer has group

Go to http://us.camelcamelcamel.com/ and set up a free account. Track 10 products that interest you. Did any of the products reach your desired price? Write a report on the usefulness of this type of app for consumers.

On December 1, 2019, Rashid incorporated Rashid, Inc., a mutual fund company that specializes in providing financial services. During the month of December, the business incurred the following transactions a. To begin operations, Rashid deposited OMR 100, 000 cash in the business s bank account. The company received the cash and issued shares to

A bank has the following balance sheet for 2020. Also shown are the respective interest rates: Assets Amount ($MM) Rate, % Business Loans 50 6 Corporate Bonds 26 5 Government Bonds 18 2.5 Cash 7 Real Assets 2 Liabilities Amount ($MM) Rate (%) Demand Deposits 36 0 Time Deposits 45 1.1 Inter-Bank Borrowing 16 1.25 Preferred Equity 1 Common Equity 5

Mary is the sole proprietor of her business and the business has recently begun experiencing financial difficulties. Mary expresses concerns that creditors could seize her savings. Which of the following is a correct statement about creditor protection? a) If Mary invests in segregated funds for the purpose of protecting her savings from

1) Monetarists are of the view that only money does and Keynesians believe that money does not matter. What is your reasoning of the extreme views held by the monetarists and the Keynesians? 2) Is Friedmans quantity theory of money close to Classical or Keynesian approach to the aggregate demand for money? Give justifications for your arguments.

Suppose you are an American investor. The interest rate on a dollar deposit (????$) is 5% and on a British pound deposit (????) is 3%. Todays exchange rate (????$/ ) is $1.80/; and the expected exchange rate one year in the future (????^e $/ ) is $1.85/. Compare the rate of return from two deposits: a) Does UIP (uncovered interest rate parity)

Assume that a U.S. firm can invest funds for one year in the U.S. at 12% or invest funds in Mexico at 14%. The spot rate of the peso is $.10 while the one-year forward rate of the peso is $.10. If U.S. firms attempt to use covered interest arbitrage, what forces should occur? (a) Does interest arbitrage hold? Is covered interest arbitrage

Veronica is a life insurance agent and she meets with a prospective client, Jason. After the necessary due diligence. Veronica recommends that Jason purchase a participating whole life policy, citing the potential benefits of policy dividends. When Jason asks Veronica about the dividend payment options, which of the following is CORRECT response

Consider a bank with the following balance sheet Assets Liabiliries Desired resenves Excess reserves Loans 510 517 580 milion milion milion Chequable deposits Bark capital 120 millon 13 milion Assuma that desired reserves are 8. To avcid insohvency, reguiators decide to provide the bank with 21 milion in bank capital. Hovwever, the bad news about

Oldhat Financial starts its first day of operations with 8 million in capital. A total of S135 million in checkable deposits are received. The bank makes a 30 million commercial loan and another 50 million in mortgages, with the following terms 200 standard 30year, fixedrate mortgages with a nominal annual rate of 5.25, each for 250,000. Assume

You hold a long position in an option portfolio. It contains an European call option on stock XYZ with a strike price of $40 and a put option on the same stock with a strike price of $30. The call option is currently trading at $1 and the put option is trading at $2. Draw a graph indicating your net profit from this investment at the expiration

using assembly language x86 assembly x86 using visual studio and Irvine's library

1. Ask a user for the name and date of birth of 4 individuals and then calculate the exact age in years and days for each and then print them out. Idea in this project is that with 4 inputs, the registers will probably not be enough so you will have to leverage the stack or other memory to do operations and then print out. 2. An inline

Exercise 1 (8 marks) Assume that on day 1, you sell one September U.S. Treasury bond futures contract at the opening price of 116 1532 (116,468.75). The initial margin requirement is 7,000, and the maintenance margin requirement is 5,500. You maintain your position every day through day 15, and then buy back the contract at the opening price on

Ms. Rhonda Fern donates some equipment to the Make A Wish Foundation, a registered Canadian charity. The assets have a fair market value of $61000, a capital cost of $51000, and a UCC of $36000. She elects to make the donation at the fair market value of $61000. She has no other source of income during the year. Determine her maximum charitable

At what point(s) in the sales process (or sales funnel) does this campaign operate? Sales process stages are: 1) generate leads; 2) build relationships/discover needs; 3) present solution/resolve concerns; 4) close the sale; 5) monitor and follow up. How does your campaign support sales activity? Measurement (KPIsKey Performance Indicators) How

Please fill in the missing items (numbered from 1 to 6) from the below report of condition for Jasper National Bank. Report of Condition Total assets 5000 Calculations Cash and due from depository institutions 174 Securities 466 Federal funds sold 90 1. Gross loans Loan loss allowance (ALL) 400 Net loans 3400 Trading accounts assets 40 2. Bank

Eugenio is working with his client, Fionna, to develop her investor profile. Fionna is retiring next year and she does not have a pension from her employer. However, Fionna has managed to save a substantial amount in her registered retirement savings plan (RRSP), which makes up the majority of her investment assets. Fionna is widowed and has two

In managing interest rate, credit and liquidity risks, discuss how FIs use securitization to their benefit. In your discussion, list the benefits and costs of securitization by using an example of a bank securitizing its credit card or mortgage receivables. In performing securitization of these loans, (a) how has the bank changed its interest

TO: Bill Bugnay MEMO #112 From: Arif Chowdhury December 1, 20XX Please issue me cheque to M. Lasker to cover his Spring Break Holidays airfare. The amount of $1680 is broken down as follows airfare is $1680 (5% GST included) (CHQ 2111) Please issue a cheque to Bath and Body Inc. for the new hot tube installed in my backyard on the weekend. The

Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries with high inflation? b) Todays spot rate of the Ghana Cedi is $0.22. Assume that purchasing power parity holds. The U.S. inflation rate over this year is expected to be 5 percent, while Ghana inflation over

1. a) Explain the theory of purchasing power parity (PPP). Based on this theory, what is a general forecast of the values of currencies in countries with high inflation? b) Todays spot rate of the Ghana Cedi is $0.22. Assume that purchasing power parity holds. The U.S. inflation rate over this year is expected to be 5 percent, while Ghana

project b initial investments (million)18 perpetual cashflows (million)22 constant growth rate3 therefore irr is1522 discount rate10 growth rate3 npv1343 project c initial investments (million)18 perpetual cashflows (million)16 constant growth rate4 therefore irr is1289 cashflows (million)16 discount rate10 growth rate4 npv867 and the crossove

Etinargemop SA (ESA) produces various fruit juices in its factory near Malaga in Spain. it has just finished its financial year to 31 March 2020. It has been an excellent year for the company with record order intake and sales shipped. Recent expansion has been rapid with new wholesale outlets being opened at the rate of two per quarter, resulting

Do you expect any changes in mortgage-backed security pricing if the pass-through security was not fully amortised? What is the present value of a twelve million $ pool of ten-year mortgages with an 8 per cent monthly mortgage coupon per annum if market rates are seven per cent? Assume that the pass-through security is fully amortised. The total

If a bank has ROE of 35%, an asset utilization ratio of 26%, and a net profit margin of 18%. Calculate the bank\\\'s ROA? 7.96 percent 4.68 percent 1.58 percent 35.62 percent

If the average asset duration of 4.7 years and an average liability duration of 3.3 years. The market value of the total assets is $1,500 million and $1,000 million in total liabilities. What is the bank\\\'s leverage-adjusted duration gap? A. positive gap of 8.0 years. B. negative gap of 2.5 years. C. positive gap of 1.4 years. D. positive gap of

If XYZ bank has $200 million market value of investment grade bonds with a duration of 9.0 years and has $1,000 million market value of commercial loans with a duration of 5.0 years. This bank has $600 million market value of consumer loans with a duration of 2.0 years, market value of deposits of $1,200 million with a duration of 1.0 year and

Select a paidfor weight loss app eg, Noom Based on how the app is pitched, briefly outline the value that a buyer might foresee in using this app Consider the following types of value performance, social, emotional, interaction, time, and financial value For your client firm, briefly outline how the dimensions of SERVQUAL are (or may be) addressed

In your spreadsheet, use the Future Value function (FV) to calculate the amount of interest that you would earn over 5 years on any original amount=> (equal to or greater than) $10,000, any nominal interest rate, a) compounded monthly, then b) compounded quarterly. Explain Future Value in your ( own words) , describe the difference between the

24. Consider the following analyses of addressable market. Which one is best Why Where do the others fall short (Im looking for you to critique each TAM analysis in the context of what the TAM is supposed to be, how that is presented in the example, and how well the writer analyzes and communicates his or her assessment of TAM, included the

Why do you think the statement released after each Federal Open Market Committee meeting retains the same basic structure?

The U.S. healthcare expenditures for 19702008 are given in the table below, and a scatter plot of the data is shown in the figure. Healthcare expenditures (in billions of dollars) 74.3 251.1 434.5 506.2 696.6 820.3 937.2 1039.4 1150.0 1310.0 1424.5 2339.5 Year O No 1970 1980 1985 1987 1990 1992 1994 1996 1998 2000 2001 2008 2000 1800 U.S.

The figure below shows the SSL Handshake Protocol that we studied in the class. What is the purpose of the following messages in this protocol Explain your answers. a. 5pts Client Hello and Server Hello b. 5pts ClientKeyExchange c. 5pts Finished Client ClientHello ClientKeyExchange ChangeCipherSpec Finished ServerHello ServerKeyExchange

You are the executive assistant to the director of sales at BTrendz, Inc., a trendy retail store that has locations in only ten states. The company is considering branching into the online retail market. Your supervisor, Kayla Zimmerman, wants to review last years sales data and make predictions about this years sales data before making any