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What are the advantages and disadvantages of direct lending for the bank? How are banks reducing the effect of the disadvantages?
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- How do adverse selection and moral hazard affect the bank lending function? And How can minimise such problems?what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM FOR THE BANKS AND BORROWERS? provide EXAMPLES.what is ADVANTAGES AND DISADVANTAGES OF THIS MORATORIUM in banking to BANKS . Give an example
- Do you think that removing the impediments to anationwide banking system will be beneficial to the economy? Explain.In order to earn money, how do financial institutions do it? What conditions restrict their ability to make a profit?If the bank decides to cut down on interest expenses by reducing its dependence upon borrowed funds, what policy must the bank follow?
- what are the disadvantages and advantages of big banks and small banks?What risks might commercial bank operations face by funding long-term loans such as mortgages to borrowers (often at fixed interest rates) with short-term deposits from savers? What steps could the financial institution take to reduce these risks?What is adverse selection? Why does it predict that lenders will prefer to arrange loans through a commercial bank rather than deal directly with a borrower?