We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More


Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion

How to Add New Discussion in Study Group ? Step By Step Guide Click Here.

(MGT411) - Money and Banking Assignment No 2 Discussion and Solutions Due Date: July 31, 2014

SEMESTER SPRING 2014
MONEY & BANKING (MGT411)
ASSIGNMENT NO.02
DUE DATE: 31ST JULY 2014 MARKS: 10
Learning Objectives: This activity aims to enable the students to get an understanding about
the commercial banks’ objectives.
 Maximizing Profitability
 Minimizing Liquidity Risk
 Contradictory nature of these objectives
Learning Outcomes: After going through this activity, the students would be able to
understand the conflicting objectives of commercial banks and how banks can operate by
minimizing such mismatch.
Assignment:
The two-fold objective for any commercial bank is to “Maximize Liquidity (for depositors)”
and “Maximize Profitability (for shareholders)”. But there is a trade-off between them, if one
increases the other decreases.
For liquidity, if a bank holds high reserves then it will have less investment, earn low profit and
low dividend for its share holders.
For profit maximization, if a bank keeps on investing its funds, then it will be difficult to meet
the cash withdrawals of depositors.
Now days, banks face ups and downs in meeting these objectives. A good bank should focus on
“portfolio management”: how the assets and liabilities are to be managed so that the profit
should be maximized and how to bring together these two inconsistent objectives. This need
experienced banking professionals to analyze situation, focus on objectives and opt a portfolio:
balanced & diversified.
In Pakistan, Faysal bank and UBL are two of the commercial banks.
Faysal Bank Limited was incorporated in Pakistan on 1994 as a public Limited company. Faysal
Bank has more than 256 branches in over 80 cities. Faysal Bank ambition is to provide par
excellence services to its customers while meeting their financial needs.
UBL was incorporated in 1959.UBL has kept pace with the changing needs of times. Keeping
the tradition of innovative alive, it introduced Pakistan’s first credit card, the UNICARD and
left its mark by launching the Pak Rupees Travelers cheques.
Now go to your LMS interface and download a “RAR file: MGT411 Assignment 2 SPR14.rar”
(includes the 3 files mentioned below), uploaded in the “Downloads” tab. Get this file
downloaded, extract data and solve the assignment using the data of Financial Year: 2013:
 Faysal Bank Financial Statements.pdf
 UBL Financial Statements.pdf
 Reserve Ratio.pdf
Requirements:
Question 1:
Compare the satisfaction level (in relation to the objective) of depositors of these two
banks. Which bank is in a good position? (Calculation: 3 marks + Comments: 2 marks)
Hint:
 Reserves include “In hand local currency and all the accounts which are kept with the
State bank of Pakistan”.
 Checkable deposits include “Customers’ current accounts” only.
 Depositors’ satisfaction level can be found out by Reserve Ratio.
Question 2:
Trade-off actually exists or not between the Liquidity and Profitability (using variables:
Assets and Equity). Comment
(Calculation: 3 marks + Comments: 2 marks)
Note: Show Complete Workings & Calculations
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet the emergencies and above mentioned
due dates should always be treated as final to avoid any inconvenience.
OTHER INSTRUCTIONS:
DEADLINE:
 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
 You may also compose your assignment in Open Office format.
 Use black and blue font colors only.
REFERENCING GUIDELINES:
 Use APA style for referencing and citation. For guidance search “APA reference style” in
Google and read various website containing information for better understanding or visit
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
RULES FOR MARKING
Please note that your assignment will not be accepted, if:
 It is submitted after the due date.
 The file you uploaded does not open or is corrupt.
 It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF
etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that Post Mid‐Term semester activities have been started and load
shedding problem is also prevailing in our country now a days. Keeping in view
the fact, you all are advised to post your activities as early as possible without
waiting for the due date. For your convenience; activity schedule has already
been uploaded on VULMS for the current semester, therefore no excuse will be
entertained after due date of assignments, quizzes or GDBs.

+ How to Follow the New Added Discussions at Your Mail Address?

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 1326

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Attachments:

Replies to This Discussion

need Assignment mgt411 ????? :( :(

yahan sab mar gai, sirf aap aur mai zinda hain. chalo apni wali tu share karo, means jitni complete kr li wo tu share karo

wesy bht he fittay mu sb bachon ka jinki jan jati hy perhty huwy or jo abhi bhi intazar ker rahy hy solution ka -_-

very sad of u guys.... Assignments ki tyari sy he half exam prep ho jati hy so come on and try sum by urself...

Faysal Bank:
Reserve Ratio:
Deposits:
Current accounts:
Remunerative 2,306,983
Non-remunerative 78,787,509
Total Deposits 81094492

Reserves:
Local currency in hand 5,276,275

Local currency current accounts 13,362,758
Foreign currency current accounts 1,331,830
Foreign currency deposit accounts 3,981,210
Total Reserves 23952073

Formula: Total Reserves / Total Deposits * 100

Reserve Ratio = 23952073/81094492*100
= 29.54%

Do the same for UBL and compare both to answer Q 1 ..! I cant share whole Q coz i know u guyz r just gonna copy paste it ;/

isk thek hony ki koi guarantee nahin... copy at ur own risk...!

yah wali asmnt itni mushkil kiou di hay 
kia humain ain styn smjh rahy hain :@ :@
main nay tu post he nahi ki 

its not tough, clear hints are given..! ap logon ko fursat dyr sy mili hy bs..!

Trade off clearly exists in Liquidity and Profitability of any organization and reasons are explained in the Question itself.

“For liquidity, if a bank holds high reserves then it will have less investment, earn low profit and

low dividend for its share holders.

For profit maximization, if a bank keeps on investing its funds, then it will be difficult to meet

the cash withdrawals of depositors.”

Trade off clearly exists in Liquidity and Profitability of any organization and reasons are explained in the Question itself.

“For liquidity, if a bank holds high reserves then it will have less investment, earn low profit and

low dividend for its share holders.

For profit maximization, if a bank keeps on investing its funds, then it will be difficult to meet

the cash withdrawals of depositors.”

Now just make an example of ur own to prove it.. Its simple ... I guess it shud work

Assignment hogai ab lms down -_-

RSS

Latest Activity

+ ! ! ! ! ! ! !pคຖ໓คค ! ! replied to +M.Tariq Malik's discussion CS411 Assignment No 01 Spring 2020 Solution & Discussion in the group CS411 Visual Programming
7 minutes ago
+ ! ! ! ! ! ! !pคຖ໓คค ! ! joined +M.Tariq Malik's group
9 minutes ago
Mehak Aziz liked +M.Tariq Malik's discussion EDU602 Educational Leadership and Management Online Quiz No 01 spring 2020 Solution Discussion
11 minutes ago
Muhammad Bilal and Haris Bscs are now friends
12 minutes ago
Mehak Aziz updated their profile
13 minutes ago
+M.Tariq Malik replied to MUHAMMAD ADIL JAVEED's discussion CS603 Software Architecture and Design | Assignment No 01 | Spring 2020 | Last date 01/06/2020 in the group CS603 Software Architecture and Design
13 minutes ago
+M.Tariq Malik replied to MUHAMMAD ADIL JAVEED's discussion CS603 Software Architecture and Design | Assignment No 01 | Spring 2020 | Last date 01/06/2020 in the group CS603 Software Architecture and Design
13 minutes ago
+M.Tariq Malik replied to MUHAMMAD ADIL JAVEED's discussion CS603 Software Architecture and Design | Assignment No 01 | Spring 2020 | Last date 01/06/2020 in the group CS603 Software Architecture and Design
15 minutes ago
zohaib iftikhar replied to zohaib iftikhar's discussion ...* RAT WO PORY CHAND KI ...*
17 minutes ago
+M.Tariq Malik replied to +¢αяєℓєѕѕ gιяℓ's discussion CS402 - Theory of Automata Assignment # 01 Due Date Jun 02, 2020 in the group CS402 Theory of Automata
17 minutes ago
+M.Tariq Malik replied to NOORI's discussion SOC101 Introduction to Sociology Assignment No 01 Spring 2020 Solution & Discussion Due Date: 08-06-2020 in the group SOC101 Introduction to Sociology
19 minutes ago
+M.Tariq Malik replied to NOORI's discussion SOC101 1ST ASSIGNMENT SPRING 2020 in the group SOC101 Introduction to Sociology
23 minutes ago

© 2020   Created by +M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service

.