Economics Homework Help. Bank Management & Possible Risks that A Bank Might Face Discussion
I’m studying for my Economics class and need an explanation.
Banking is risky both because depository institutions are highly leveraged and because of what they do. The bank’s goal is to make a profit in each of its lines of business. In the process of all these activities, the bank is exposed to a host of risks.
1. Discuss (which means explain, not just make a list) possible risks that a bank might face and how the bank could avoid these risks through management of its assets and liabilities.
2. Which risk(s) do you think banks can fall prey to easily and why. Give real world examples.
