Exam 17: Commercial Bank Operations

Which of the following is true in regard to money market deposit accounts?

Obtaining funds through ____ is not a common way for banks to satisfy a temporary deficiency of funds.

A financial institution is likely to call a callable CD before its maturity if interest rates have risen since the CD was issued.

Bank capital represents funds obtained through ____ and through ____.

Protective covenants impose conditions that require the bank to provide additional loans to a borrower to protect the borrower from going bankrupt.

____ is (are)NOT a major source of funds for commercial banks.

The five largest banks in the United States account for about one-tenth of all assets in U.S. banks.

Interstate banking regulations presently allow commercial banks to acquire other banks in their region of the country, but not to expand across the nation.

When a bank in need of funds for a few days sells some of its government securities to a corporation with a temporary excess of funds and then buys them back shortly thereafter, this is a

In a revolving credit loan, the bank typically charges businesses a commitment fee on any unused funds.

The operations, management, and regulation of a commercial bank are the same irrespective of the types of services offered.

A bank's uses of funds represent liabilities of a bank.

The yield on repurchase agreements is slightly higher than the federal funds rate at any given point in time.

A ____ is a time deposit offered by some large banks to corporations, with a specific maturity date, a minimum deposit of $100,000 or more, and a secondary market.

Proprietary trading is generally less risky than a bank's lending operations.

The interest rate charged on loans between depository institutions is commonly referred to as the

For any given bank, federal funds ____ represent a(n)____.

A single loan in the federal funds market is usually for ____; when a bank sells a single repurchase agreement, the maturity is usually ____.

Which of the following statements is NOT correct?

When a bank engages in proprietary trading, it