Assignment Questions [10 Marks] What are the different types of risks the banks and other financial institutions are exposed to? [2 Marks What are the Asset-Liability Management Strategies? Explain. [2 Marks] Explain the loanable fund theory of Interest Rate Determination. [2 Marks] What are the different types of derivatives? Take an example and explain […]
Critically evaluate the risk measurement techniques used by banks in their asset and liability management (ALM) activities.
Open book exam questions 1. Explain the concept of the yield curve. for bonds. Explain why it is important for bankers to know about its shape or slope. Critically evaluate the main theories of the term structure of interest rates. (word limit 500 words) (25 marks) Name the theories/underline main key assumptions Best theory and […]