Exam 17: Commercial Bank Operations

Money market deposit accounts (MMDAs)

Banks will not accept intangible assets, such as patents and brand names, as collateral for commercial loans.

____ loans are primarily used to finance the purchase of fixed assets.

Commercial banks are allowed to invest in

Banks sometimes need funds temporarily and sometimes have excess funds available. Which of the following is commonly a source of bank funds and a use of bank funds ?

The interest rate charged on loans from the Federal Reserve to banks is commonly referred to as the

____ are the largest bank source of funds as a percentage of total liabilities.

The main use of bank funds is for

A(n)____ account provides checking and debit card services as well as interest.

The Federal Reserve provides loans to banks in order to

A forward contract on currency

When banks need funding for just a few days, they would most likely

The interest rate banks charge on business loans is known as the

Which of the following is NOT an off-balance sheet activity?

Because U.S. dollars are widely used as an international medium of exchange, the Eurodollar market is very active.

When a bank obtains funds through ____, households are not a common provider of the funds.

The most common way for U.S. commercial banks to expand internationally is by purchasing banks in other countries.

The federal funds rate is ____ the yield on a Treasury security with a similar term remaining until maturity.

When a bank obtains funds through a ____, the provider of the funds receives collateral.

Transaction deposits do NOT include