B541 Final Exam
Fall 2011
Name________________________________________________
1. For the Eurozone, why is fiscal union in addition to currency union necessary?
2. For Shihan Bank Case, explain the follow
Dual Bank
One Bank
New Bank
3. List at least five reasons why New Century Financial failed
_____________________________________________________
_
____________________________________________________________
4. AllStar Bank has the following balance sheet (in millions), calculate the Tier 1 and Total
capital ratio: risk weights are in the parenthesis. Please show the process, not just answers:
Assets
Cash
Loans
Securities
Total assets
Liabilities and Equity
$30 (0%)
90 (50%)
50 (20%)
$170
(a) Tier 1 Capital Ratio
(b) Total Capital Ratio
Deposits
Borrowed funds
Common Stock
Long-term Debt
Total liabilities and equity
$110
40
15
5
$170
5. Explain the following indicating what monetary instruments are used.
Purchased Liquidity Management
Stored Liquidity Management
6. List at least five growth strategies for Norwest?
a.
b.
c.
d.
e.
Please sign at the bottom indicating that you read and understand the policy.
Academic Honesty
In accordance with the CSU Channel Islands policy on academic dishonesty, students in this
course who submit the work of others as their own (plagiarize), cheat on tests or examinations,
help other students cheat or plagiarize, or commit other acts of academic dishonesty will receive
appropriate academic penalties, up to and including failing the course.
No use of iPhone or computers is allowed unless specifically allowed by the instructor.
____________________________________
Signature