/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q.12 Why is being nosy a desirable tr... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 9: Q.12 (page 264)

Why is being nosy a desirable trait for a banker?

Short Answer

Expert verified

Being nosy is a desirable quality for a banker because it suggests the banker's wish to further determine the overall risk of a borrower beyond that of conventional standards

Step by step solution

01

Concept Introduction

A banker is one utilized occupied with accepting other people's cash in deposit, to be reimbursed on need, limiting other people's cash, and giving his own for flow.

02

Being nosy is a desirable quality for a Banker

Being nosy is a desirable quality for a banker because it suggests the banker's wish to further determine the overall risk of a borrower beyond that of conventional standards. The banker would improve his or her underwriting standards to decide if the borrower is truly creditworthy. This would decrease the likelihood of default from borrowers, which could have prevented the financial crisis that we are in now.

03

Final Answer

Being nosy is a desirable quality for a banker because it suggests the banker's wish to further determine the overall risk of a borrower beyond that of conventional standards.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Go to the St. Louis Federal Reserve FRED database, and find data for all commercial banks on total assets (TLAACBM027SBOG), U.S. government and agency securities held (USGSEC), other securities held (OTHSEC), commercial and industrial loans (BUSLOANS), real estate loans (REALLN), consumer loans (CONSUMER), interbank loans (IBLACBM027SBOG), other loans (OLLACBM027SBOG), and other assets (OATACBM027SBOG). Use the most recent month of data available across all indicators.

a. What is the total amount of loans held by banks? What is this number as a percentage of total bank assets?

b. What is the total amount of securities held by banks? What is this number as a percentage of total bank assets?

c. What is the total amount of reserves and cash items? What is this number as a percentage of total bank assets?

If the bank you own has no excess reserves and a sound customer comes in asking for a loan, should you automatically turn the customer down, explaining that you don鈥檛 have any excess reserves to lend out? Why or why not? What options are available that will enable you to provide the funds your customer needs?

Suppose you are the manager of a bank that has \(15million of fixed-rate assets, \)30million of rate-sensitive assets, \(25million of fixed-rate liabilities, and \)20million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5percentage points. What actions could you take to reduce the bank鈥檚 interest-rate risk?

Using the T-accounts of the First National Bank and the Second National Bank given in this chapter, describe what happens when Jane Brown writes a check for $90on her account at the First National Bank to pay her friend Joe Green, who in turn deposits the check in his account at the Second National Bank.

If a bank finds that its ROE is too low because it has too much bank capital, what can it do to raise its ROE?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.