Answer to Question #222146 in Macroeconomics for SIR SEN

Question

Which of the following are wholesale and which are retail?
A. Large scale deposit made by firms at negotiated rates of interest______ wholesale/ retail
B. Loans made by high street banks at published rates of interest______ wholesale/retail
C. Deposit in saving account in high street banks_____wholesale/retail
D. Large scale loans to industry syndicated through several banks_____ wholesale/retail
3. Rank the following assets of a commercial banks in order of decreasing liquidity.
1. Market loans
2. Reserve with bank of Ghana
3. Cash
4. Personal loans
5. Sale and purchase agreement
6. Mortgages
7. Government bonds

Answer 1

(1)

A. Wholesale

B. Retail

C. Retail

D. Retail

E. Wholesale

(2)

The order of liquidity from high liquidity to low liquidity is as follows:

• Cash
• Reserve with bank of Ghana
• Market loans
• Sales and purchase agreement
• Government bonds
• Market loans
• Personal loans
• Mortgages