Exam 12:Depository Institutions: Banks and Bank Management

Why are U.S. banks prohibited from owning stocks?

Of the roughly 6,200 banks in the United States at the end of 2015, by far the greatest numbers of them were:

A repurchase agreement is:

The procedure that estimates the interest-rate sensitivity of a bank's assets and liabilities is called:

A bank's return on assets (ROA) is calculated by dividing:

If a bank has $100 million in assets and a net worth of $10 million, its debt-to-equity ratio is:

The tendency for large banks to have a higher return on equity than small banks suggests:

If a bank has more interest-rate sensitive liabilities than interest-rate sensitive assets, an increase in the interest rate will cause profits to:

The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:

Considering a bank's balance sheet, which of the following statements is false?

If you focus on interest-rate risk, can you explain why banks offer higher interest rates on longer-term CDs than they do on short-term CDs?

A bank faces foreign exchange risk when:

Why would a bank usually want to minimize the amount of excess reserves it has on hand?

If bank with $100 million in assets and $10 million in equity increases its assets by adding $1 to capital for every $1 added to assets:

A bank that specializes in granting loans to firms in a specific line of business:

Bank's hold marketable securities as part of their assets. For U.S. banks these marketable securities include: