1. Select one factor that affects cash flows for a bank valuation. Why is this factor significant for banking operations?2. Select one factor that affects the required rate of return for investors in commercial banks. Why is this factor significant for investors?3. Briefly explain why a bank’s capital – or net worth – is important when it comes to possible losses, such as during the 2008-09 financial crisis. quizlet 4. Briefly explain one of the risks banks face. Why is this risk significant for banks?5. Select and briefly explain one approach, which banks may manage interest rate risk. Why might it be impossible to eliminate the risk completely?•Considering the bank you currently use, create performance criteria and then rate your bank against the criteria you developed. Make a suggestion for one area of improvement based on your evaluation.•Determine the risks that are unique to thrift operations compared to commercial banks. Describe how the thrift should manage each risk identified.