Assignment
You have been hired as Risk Consultant at a U.S.-based bank.
The bank is currently reporting its financials using the book value accounting method. The bank is considering an international move in which it can switch to the market value accounting method.
You have been asked to write a 3-page report for the bank`s management. The report should discuss the following:
• What is the difference between book value accounting and market value accounting?
o How do interest rate changes affect the value of bank assets and liabilities under the two methods? Provide an example that supports your position on this.
• What is marking to market?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.