Exam 13: Managing Liabilities

Large CDs are entirely covered by FDIC deposit insurance.

Deregulation of deposit accounts resulted in banks moving toward ___________ to more closely reflect the true cost of producing specific products and services.

Which of the following pricing policies is used to introduce new products and support or rejuvenate demand for existing products?

Which of the following is NOT one of the key factors bankers consider in pricing consumer deposit products?

Check truncation means that cleared checks are returned to depositors after a waiting period has elapsed.

Commercial paper is unsecured credit and, therefore, is normally issued by firms with strong credit ratings.

Which of the following is NOT an implicit price of acquiring deposits?

In maximizing bank profitability, all of the following are required EXCEPT:

Which of the following statements is true regarding NOW accounts?

For the profit-maximizing banks seeking to minimize their cost of funds, the weighted-average cost of funds should be:

The bank's deposit source of funds that typically represents the deposits of regular bank customers, such as business firms, government units and households, is categorized as:

The average costs of bank funds is a superior concept compared to a marginal cost approach.

Cross-selling is one way to provide relationship banking.

What is a money market deposit account (MMDA)?

Typically, nondeposit sources of funds do NOT have:

Nondeposit funds are typically exempt from reserve requirements.

The FDIC Improvement Act of 1991 prohibits depository institutions that are not well capitalized from accepting brokered deposits.

When interest rate levels are low, banks have difficulty retaining deposit funds.

In a repurchase agreement the purchaser does NOT acquire title to the securities fo the term of the agreement.

Which of the following deposit accounts can serve as both core and purchased deposit sources of funds for banks?