Chapter 11
Liquidity and Rerves Management: Strategies and Policies
Fill in the Blank Questions
1. A(n) __________________ is an ast which can be converted into cash easily, which has a relatively stable price and is reversible so that the ller can recover their original investment with little risk of loss.
Answer: liquid ast
2. When a financial institution lls asts to manage liquidity it faces _________________________. They lo the future earnings on tho asts, they face transaction costs on tho sales and the asts most easily sold often have the lowest return.
Answer: opportunity costs
韩国服饰
3. _________________________ is when the financial institution borrows money in the money market to meet their liquidity needs.
Answer: Purchad (borrowed) liquidity
4. The _________________________ is the total difference between its sources and us of funds.
Answer: liquidity gap
收银员工作内容
石径斜 5. _________________________ are the deposits and other borrowings of the bank which are very interest nsitive or where the bank is sure they will be withdrawn during the current period.
Answer: "Hot money" liabilities
6. The _________________________ is the idea that management should make all good loans and count on its ability to borrow funds if it does not have the liquidity to meet its cash needs.
Answer: customer relationship doctrine
7. _________________________ are the asts the bank must by law hold behind its deposits. In the U.S. only vault cash and deposits held with the Federal Rerves can be ud to meet the requirements.
Answer: Legal rerves
8. A(n) _________________________ is the account the bank must have at the Federal Rerve to cover any checks drawn against the bank.
Answer: clearing balance
9. A(n) _________________________ is a rvice developed by banks where the bank shifts money out of accounts with rerve requirements and into savings accounts overnight.
Answer: sweeps account
10. The _________________________ is a 14 day period stretching from a Thursday to a Wednesday. This is the period in which the bank has to keep their average daily level of required rerves for a particular computation period.
Answer: rerve maintenance period
海拔最高的大洲 11. _________________________ is the availability of cash in the amount needed at a reasonable cost.
Answer: Liquidity
12. The oldest approach to meeting liquidity needs which relies on the sale of liquid asts to meet liquidity demands is called _________________________.
电脑插耳机没反应
Answer: ast liquidity management
13. Under a _________________________ strategy some of the expected demands
for liquidity are stored in asts, while others are backstopped by arrangements for lines of credit from banks or other suppliers of funds.
Answer: balanced liquidity management
14. A(n) _________________________ is the person in the bank responsible for the bank's cash position and meeting legal rerve requirements.
Answer: money position manager
15. The method ud in the U.S. to determine a bank's legal rerve requirement in which the period for holding legal rerves follows the period ud to calculate the required amount of legal rerves is called _________________________.
Answer: lagged rerve accounting
16. The fed funds rate is generally most volatile on bank __________ day.
Answer: ttlement
17. Many depository institutions hold __________ balances (extra rerves) to help prevent overdraft penalties.
台球姿势
Answer: precautionary
18. Not all _______ banks around the world have rerve requirements.
Answer: central
19.For veral decades, the largest banks around the world have chon which calls for borrowing immediately spendable funds to cover all anticipated demands for liquidity.
Answer: liability management
松软的近义词20.The approach to managing liquidity starts with two simple facts, liquidity ris as deposits increa and loans decrea and liquidity falls when deposits fall and loans increa.
Answer: sources and us of funds
人生处处是考场21.In the approach to managing liquidity deposits and other sources of funds are divided into categories and then liquidity managers must t aside liquid funds according to some desired operating rule.
