Banks Management – Questions

  
Q.1: Blue Skies Bank of Florida issues a three-month (90-day) negotiable CD in the amount of $20 million to ABC Insurance Company at a negotiated annual interest rate of 2.75 percent (360-day basis). Calculate the value of this CD account on the day it matures, and the amount of interest income ABC will earn. What interest return will ABC Insurance earn in a 365-day year? [2.5 Marks]
Q2. What are the advantages of borrowing from the Federal Reserve banks or other central banks? Are there any disadvantages? What is the difference between primary, secondary, and seasonal credit? What is a Lombard rate and why might such a rate be useful in achieving monetary policy goals? [2.5 Marks]
Finance

Don't use plagiarized sources. Get Your Custom Essay on
Banks Management – Questions
Just from $13/Page
Order Essay
Calculator

Calculate the price of your paper

Total price:$26
Our features

We've got everything to become your favourite writing service

Need a better grade?
We've got you covered.

Order your paper
error: Content is protected !!
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code SEARCHGO