Introduction To Banking Already Passed

regulation {Ans: - seperation of activities- between commercial and investments banks - deposit guarantee- protect the depositor should the bank fail - control over interest rates of the banks lending and deposit taking activities}PE {Ans: = Market Value per Share / Earnings per Share (EPS) aluation ratio of a company's current share price compared to its per-share earnings Generally a high P/E ratio means that investors are anticipating higher growth in the future. The average market P/E ratio is 20-25 times earnings. The P/E ratio can use estimated earnings to get the forward looking P/E ratio. Companies that are losing money do not have a P/E ratio.}market capitalisation {Ans: stock price * the total number of shares outstanding classify the size of a company}bank capital regulation {Ans: - banks must have sufficient capital to be able to support their liabilities. - to absorb losses and to build and maintain con- fidence in a bank. - benefits of having sufficient capital- increases confidence, giving banks a competitive advantage - must cover its fixed assets}LIBOR rate {Ans: - rate at which banks charge each other for short term loans -administered by the ICE Benchmark Administration (IBA), and