for Dr.Loizeaux only

random finance questions. no word count minimum. just answer the questions normally. dont need this until 2/20.im paying $12Borrowing from the Federal Reserve Describe the process of “borrowing at the Federal Reserve.” What rate is charged, and who sets it? Why do banks commonly borrow in the federal funds market rather than through the Federal Reserve?Bank Capital Explain the dilemma faced by banks when determining the optimal amount of capital to hold. A bank’s capital is less than 10 percent of its assets. How do you think this percentage would compare to that of manufacturing corporations? How would you explain this difference?Integrating Asset and Liability Management What is accomplished when a bank integrates its liability management with its asset management?Net Interest Margin What is the formula for the net interest margin? Explain why it is closely monitored by banks.Bank Loan Diversification In what two ways should a bank diversify its loans? Why? Is international diversification of loans a viable strategy for dealing with credit risk? Defend your answer.Floating-Rate Loans Does the use of floating-rate loans eliminate interest rate risk? Explain.Interest Income How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank?Impact on Income If a bank shifts its loan policy to pursue more credit card loans, how will its net interest margin be affected?Noninterest Income What has been the trend in noninterest income in recent years? Explain.