Class Quizzes Questions and answers 8518 9518 Quiz

Class Quizzes Questions and answers 8/5/18 & 9/5/18

Quiz 1 1. What is the law that governs Islamic Banking? 2. The Volker Rule is part of which Act? 3. What are the two disadvantages of correspondent banking? 4. What is the turnover of a mid-market company? 5. What is the difference between a mutual and a bank? 6. When was the Glass-Stegall Act revoked? 7. What are the two main sources of income for modern banks? 8. What is the maximum maturity for commercial paper? 9. What’s the definition of an option? 10. What is the aim of a hedge fund?

The answers 1. Sharia law 2. The Dodd-Frank Act 3. Low priority customers, some credit transactions not allowed. 4. Between £ 2 M and £ 30 M 5. Mutuals owned by members 6. 1999 7. NII and Fees & commissions 8. 270 days 9. The right, but not the obligation to but a security at a set time and price 10. To give equity like returns for bond like risk

Quiz time! 1. Name the 3 ways a central bank controls money supply 2. What are the 5 main elements of Macro economic policy? 3. What’s the difference between an option and a warrant? 4. What’s the difference between a put and a call? 5. What is the aim of a hedge fund? 6. What is a CDO? 7. What are the 3 tools of monetary policy? 8. Name 2 types of unconventional monetary policy 9. What does the Volker rule do? 10. Name two key features of a private bank

Answers 1. Control physical cash, control NBFIs, control credit 2. Monetary, fiscal, exchange rate, national debt management, prices and incomes. 3. Option is exercisable for up to 1 year, warrant >1 year 4. Put = option to sell, call = option to buy 5. Equity like returns for bond like risk 6. Collateralised Debt Obligation 7. Open market operations, the discount window, reserve requirements 8. Forward guidance, QE, signalling, credit easing. 9. Stops commercial banks speculating with depositor’s money 10. HNWI’s only, relationship biased, tailored, value added service, personalised, discrete