Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Vault cash of a bank is Cash inside the safe of a bank Currency at the bank bran

ID: 2729103 • Letter: V

Question

Vault cash of a bank is Cash inside the safe of a bank Currency at the bank branches Currency at the bank branches and ATMs Currency at the bank ATMs In general, for a bank, ordinary checking accounts Pay interest to depositors Do not pay interest to depositors Are not government regulated Are taxed by the government Net worth for a bank is The level of liabilities for the bank The level of assets for the bank The difference between assets and liabilities for the bank The difference between liabilities and assets for the bank. Speculation in financial markets corresponds to Always making profits in the stock markets Making bets on asset prices Always rising asset prices None of the above. Hedging with securities corresponds to reducing risk by purchasing high return If the entire stock market declines If another asset produces a low or negative return If the asset's profitability declines If tax rates increase To buy a Credit Default Swap for an asset, the investor Needs to own the asset

Explanation / Answer

ans 2 ) (a) cash inside the safe of a bank

ans 3) (b) do not pay interest to depositors

ans 4) (c) The difference between assets and liabilities for the bank

Ans 5) (b) making bets on assets prices