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- What is the contribution to the asset base of the following items under the Basel III requirements? $40 million repurchase agreements (against U.S. Treasuries). $2 million loan to foreign bank, OECD rated 3. $500 million 1–4 family home mortgages, category 1, loan-to-value ratio 80 percent.D6) Finance 1.In the US Balance of Payments accounts, a sale of euros by the US treasury should be treated as: Group of answer choices a credit to capital account a debit to capital account a credit to official reserve account a debit to official reserve account Please help meWhat is the contribution to the asset base of the following items under the Basel III requirements? $10 million cash reserves. $50 million 91-day U.S. Treasury bills. $25 million cash items in the process of collection. $5 million UK government bonds, OECD CRD rated 1. $5 million French short-term government bonds, OECD CRD rated 2. $1 million general obligation bonds. $40 million repurchase agreements (against U.S. Treasuries). $2 million loan to foreign bank, OECD rated 3. $500 million 1–4 family home mortgages, category 1, loan-to-value ratio 80 percent. $10 million 1–4 family home mortgages, category 2, loan-to-value ratio 95 percent. $5 million 1–4 family home mortgages, 100 days past due. $500 million commercial and industrial loans, AAA rated. $500 million commercial and industrial loans, B- rated. $100,000 performance-related standby letters of credit to a AAA rated corporation. $100,000 performance-related standby letters of credit to a municipality issuing general obligation…
- What is National Savings Certificate? A. Short-term U.S. government debt obligation B. A fixed - income investment scheme C. A financial product commonly sold by banks, thrift institutions, and credit unions D. An unsecured money market instrumentWhat is the contribution to the asset base of the following items under the Basel III requirements? $7 million commercial letter of credit to a foreign bank, OECD CRC rated 2. $3 million five-year loan commitment to a foreign government, OECD CRC rated 1. $8 million bankers’ acceptance conveyed to a U.S. AA rated corporation.Peter Sheffield has Euros (€) amounting to €500,000 and is provided with the following quotes: Bank A: Euro/US dollar = €0.8418/$ Bank A: British pound /US dollar = £0.7538/S Bank B: British pound/Euro = £0.8863/€ Determine whether an arbitrage opportunity exists. Show your calculation in the space below and briefly explain (in one or two sentences) why the arbitrage opportunity exists or not. For example, show your calculation as follows (The currencies used in the example are not applicable to your calculation. It just provide you with information how you should show your calculation): Yen/ZAR = 11.7654/1.3954 = 8.4316 (Round your answer to 4 decimals) Reason why arbitrage opportunity exists/ does not exist:
- Below is the balance sheet for Longhorn Bank, a private bank. As a commercial bank, Longhorn Bank faces a 10% reserve requirement. This scenario applies to the questions 34 - 38. ASSETS LIABILITIES Customer Reserves deposits $1,000,000 $150,000 Loans to households and biz $850,000International financial management : MCQ Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Peruvian Sol in Canadian dollar is: (a) about 3.1875 Canadian dollars. (b) about .3137 Canadian dollars. (c) about 2.36 Canadian dollars. (d) about .3137 British pound (e) about .3137 Peruvian Sol. 2. Assume that a bank’s bid rate on Swiss francs is £0.25 and its ask rate is £0.26. Its bid-ask percentage spread is: (a) about 3.85 (b) about 4.00% (c) about 3.55% (d) about 4.15%A. Discuss what could happen if GBC Financial Holdings PLC fails to meet these new requirements. Analyze what GBC Financial Holdings PLC might do to comply with the Basel III standards Asset Amount Cash and equivalents Government securities Interbank loans Mortgage loans Ordinary loans BBB+ - BBB- $5,000,000 AAA - AA- $1,500,000,000 $100,000,000 $2,000,000,000 $300,000,000 $550,000,000 Standby letters of credit $81,000,000
- Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Exports Imports Capital Outflows Capital Inflows $900 - $675 - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to billion.I want the answer of (c). I need the answer of all questions 8. As an employee of the foreign exchange department for a commercial bank in USA, you have been provided the following information: Beginning of Year: Initial amount of investment $2,00,000 One-year forward rate of £ = $1.59 One-year U.S interest rate 8.00% One-year British interest rate 9.09% 11 Spot rate of f = $1.625 Spot rate of Australian dollar (A$) = $.70 Cross exchange rate: £1= A$2.35 One-year forward rate of A$ = $0.70 One-year Australian interest rate 10.00% a) Determine whether triangular arbitrage is feasible and, if so, how it should be conducted to make a profit? b) Using the information, determine whether covered interest arbitrage is feasible and, if so, how it should be conducted to make a profit? c) Assume that at the beginning of the year, the pound's value is in equilibrium. Over-the- year, the British inflation rate is 6 percent, while the U.S. inflation rate is 4 percent. Further…Assume the following information: U.S. deposit rate for 1 year U.S. borrowing rate for 1 year New Zealand deposit rate for 1 year New Zealand borrowing rate for 1 year New Zealand dollar forward rate for 1 year New Zealand dollar spot rate = $.49 Also assume that a U.S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$500,000 in 1 year. You are a consultant for this firm. = 3% = 4% Group of answer choices $235,841. $264,000. $245,000. $236,127. = 6% = 7% = $.48 Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge?
