Balance Sheet
This is an asset because people owe the bank money.
What is a loan?
The sudden demand for liquid funds.
What is liquidity risk?
This type of security can not be held by a bank
What are stocks?
This is a liability because the banks must pay you interest on these.
What are deposits?
The amount of reserves that a bank must hold.
What are required reserves?
This type of security can be held by banks.
What are bonds?
The difference between bank assets and bank liabilities?
The risk that a banks loan will not be paid.
Securities that banks hold are also referred to as this.
What are secondary reserves?
This is a banks most liquid asset.
What is cash?
The mismatch of different maturity dates on loans.
What is interest rate risk?
These government securities are held by banks.
What are government bonds?
Total bank liabilities plus bank capital
What is "Total Bank Assets
The risk of buying and selling securities.
What is trading risk?
These securities are backed by mortgages
What are mortgage backed securities?