FIN 401 SEU Bank Management and Financial Intermediaries Questions


‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Deadline: 16/04/2022 @ 23:59
(To be posted/released to students on BB 30/03/2022)
Student’s Name:
Course Name: Bank Management
Course Code: FIN401
Student’s ID Number:
Semester: 2nd
Academic Year: 1442/1443 H, 2nd Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10
Level of Marks: High/Middle/Low

This assignment is an individual assignment.
Due date for Assignment 2 is 16/04/2022

The Assignment must be submitted only in WORD format via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor
presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.

All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures
containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
College of Administrative and Financial Sciences
Assignment Questions
1. To what different kinds of risk are banks and their financial-service competitors subjected today?
(2 Marks)
What forces cause interest rates to change? What kinds of risk do financial firms face when interest rates
change?(2 Marks)
3. What is the yield curve, and why is it important to know about its shape or slope?(2 Marks)
4. A bank reports that the total amount of its net loans and leases outstanding is $936 million, its
assets total $1,324 million, its equity capital amounts to $110 million, and it holds $1,150 million
in deposits, all expressed in book value. The estimated market values of the bank’s total assets and
equity capital are $1,443 million and $130 million, respectively. The bank’s stock is currently
valued at $60 per share with annual per-share earnings of $2.50. Uninsured deposits amount to
$243 million and money-market borrowings total $132 million, while nonperforming loans
currently amount to $43 million and the bank just charged off $21 million in loans.
Calculate risk measures as you can from the foregoing data. (4 Marks)
Liquidity Risk, Interest Rate Risk, Capital Risk, Credit Risk, Price Risk

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