1) discuss the difference between bank goals and bank objectives in the planning process.

And What is the ultimate objective of bank?

2.explain the meaning of standard & poors AAA and AA credit ratings.

3. explain the difference between a line of credit and a revolving loan.

4. why is government interested in supporting bank liquidity in the face of financial panic? Should very large banks be prevented from failing by the government?

5. how does the deposit compositions of small and large banks differ?

1. Objectives are usually more general and less quantifiable than goals. Examples of bank objectivesinclude the following: Upgrade the quality of management expertise in the area of high technologylending and expand the financial services being offered to retail customers in order to increase the sizeand diversification of the deposit base. Once the objectives of the bank are developed, they can betranslated into specific, quantifiable goals such as to expand prime grade loans to manufacturing firmsby 15% in the next year.

2. AAA is highly rated equivalent bro sovereign rating. AA is 1 notch lower than high rating.

3. A revolving line of credit is a dynamic financial product, as you pay the credit down, you may be offered more credit to spend, especially if you make regular, consistent payments on a revolving credit account. A line of credit is a one-time financial arrangement or a static product.

4. Banks diversify the liquidity demands of their depositors and borrowers and, in so doing, economize on this common liquid resource. ... In this way, banks are able to save on the cost of holding the liquid asset buffer in a way that finance companies, which make loans but do not take deposits, can- not.

5. Small banks rely mainly on retained earnings and very little on long term debt, whereas largebanks rely on common stock, retained earnings and long term debt.Small banks have a difficulttime to place their equity and debt securities in the market and thus, rely more heavily on internalcapital