1) Make use of Bank of America 2012 annual report to reply the questions given below:
a) What are the kinds of deposits which BA uses to get most of its funds? Write down the major uses of funds by BA? Sum up any statements made by BA in its annual report about how current or potential regulations will affect its performance.
b) Is BA trying to or involved with offering securities services? If so, Describe how in detail? Is BA trying to or involved with offering insurance services? If so, describe how in detail?
c) Assess BA’s balance sheet in addition to any comments in its annual report about gap between its rate-sensitive assets and its rate-sensitive liabilities. Does BA have the positive gap or negative gap?
d) What methods does BA employ to decrease its gap and thus decrease its exposure to interest rate risk? Sum up any statements made by BA in its annual report about how it try to limit its exposure to credit risk on loans it provides. Find out BA’s interest income as the percentage of its total assets?
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