0
How do commercial banks reconcile the objectives of liquidity security profitability and convertibility?
Wiki User
∙ 8y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is relationship between liquidity profitability and solvency?
If liquidity inceases profitability decreases so there is inverse relationship
What are the four pillars of finance?
Liquidity, Profitability,Stability,Growth
What are four major financial ratios?
Liquidity, Profitability, Leverage, and Activity/Efficiency
What are the objectives of banking sector?
Our business objective is to maintain higher profitability by maintaining circular and efficient flow of amount of money deposited by the customers and the lenders. The main purpose of a bank is to lower transaction costs, lower information costs, create liquidity, and to diversify people's money in a way they could not do on their own.
What are the principle of employment of bank funds?
the principles are as follows 1) Safety 2) Liquidity 3) Diversity 4) Profitability 5) Short Term Loan
What is relationship between liquidity profitability and solvency?
If liquidity inceases profitability decreases so there is inverse relationship
Is accrual accounting more closely related to a company's goal of profitability or liquidity?
Profitability
Is accrual accounting more closely related to a company’s goal of profitability or liquidity?
Profitability
How are the concept of liquidity and profitability different?
The liquidity means the assest which can easily turned in to cash.. where as profitability is money which u have earned from ur business it is also cash...
What are the four pillars of finance?
Liquidity, Profitability,Stability,Growth
What is the difference between profitability and liquidity?
liquidity is how quickly an item can be converted to cash, usually to pay short term debts, profitability is how much money an entity has after taking sales revenue - cost of goods sold...so gross margin
Why is profitability more important than liquidity?
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
Is profitability more important than liquidity?
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
How do banks achieve a balance between profitability and liquidity?
fully discription of ii
What are four major financial ratios?
Liquidity, Profitability, Leverage, and Activity/Efficiency
A short-term creditor would be most interested in?
profitability
The dilemma of liquidity vs profitability arises in case of?
only public sector units
