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Current status of philippine economy?
the status of our country is very complecatedThe Philippine economy seems comparatively well-equipped to weather the global financial crisis in the short term as a result of the efforts over the past few years to control the fiscal deficit, bring down debt ratios, and adopt internationally-accepted banking sector capital adequacy standards. The Philippine banking sector -- which comprises 80% of total financial system resources -- has limited direct exposure to distressed financial institutions overseas (i.e., $2 billion, less than 2 percent of aggregate banking system assets). Conservative regulatory policies, including the prohibition of investments in structured products, shielded the insurance sector from exposure to distressed financial firms. While direct financial exposure to problematic investments and financial institutions is limited, the impact of external shocks to economic growth, poverty alleviation, employment, remittances, credit availability, and overall investment prospects is a concern.The Philippines is still in the third world which means the economy is still not stable.
What is the significance of mean preserving spread in the context of financial risk management?
Mean preserving spread is a concept in financial risk management that ensures the distribution of potential outcomes remains stable or improves when risk is added. This is important because it allows investors to increase their risk exposure without decreasing their expected return, helping to manage and mitigate potential losses in a more controlled manner.
What is the importance of treasury management under harsh economic conditions?
Treasury management involves the process of managing the cash, investments and other financial assets of the business. The goal of these activities is to optimize current and medium-term liquidity and make solid financial decisions involving invested and investable assets. Treasury management also includes hedging where needed to reduce financial risk exposure. Treasury management's functions include: - Cash Flow Management - Float - Relationships and Risks - Information Sharing
How credit derivatives take part in global crisis?
Credit derivatives, such as credit default swaps, can amplify financial crises by allowing institutions to take on excessive risk without fully understanding their exposure. During the 2008 financial crisis, these instruments contributed to the collapse of major financial institutions, as they were often used to insure against defaults on mortgage-backed securities. The lack of transparency and regulation in the credit derivatives market further exacerbated the crisis, leading to a loss of investor confidence and a systemic downturn in the global economy. Ultimately, their misuse highlighted the interconnectedness of global financial systems and the potential for localized failures to trigger widespread turmoil.
Compare and contrast transaction exposure and economic exposure?
transaction exposure relates to the risk of exchange rate movements relating to current investments. In other words investments which are already contracted for. Economic exposure relates to the risk associated with exchange rate movements which may affect future cash flows.
What is the duration of exposure?
The duration of Maximum Exposure is 3600.0 seconds.
What is the duration of Maximum Exposure?
The duration of Maximum Exposure is 3600.0 seconds.
What is the duration of Exposure of a Dream?
The duration of Exposure of a Dream is 2700.0 seconds.
What is the duration of Daffy's Southern Exposure?
The duration of Daffy's Southern Exposure is 420.0 seconds.
How do you calculate financial exposure?
Financial exposure is the maximum amount of money you can loose on a certain investment. financial exposure = financial position * price e.g if you have 100 shares of ABC at $10 each your financial position = 100 and your financial exposure = 100*10 = $ 1000
What is the duration of Northern Exposure?
The duration of Northern Exposure is 2700.0 seconds.
What is the difference between risk and exposure?
An exposure consist of the potential financial effect of an event multiplied by its probability of occurrence and risk is with probability of occurrence. Thus an exposure is a risk times its financial consequences.
What is your loan exposure with financial institutions?
risky
Indentify a disadvantage of shelter in place?
Its protection diminshes with the duration of the exposure
Identify a disadvantage of shelter in-place?
Its protection diminishes with the duration of the exposure.
Identify a disadvantage of shelter in place?
its protection diminishes with the duration of the exposure
How does diversification affect financial institions credit risk exposure?
Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.
