Exam 9: Banking and the Management of Financial Institutions

Which of the following is NOT a source of borrowings for a bank?

Assume a bank has $200 million of assets with a duration of 2.5,and $190 million of liabilities with a duration of 1.05. If interest rates increase from 5 percent to 6 percent,the net worth of the bank falls by

Duration analysis involves comparing the average duration of the bank's ________ to the average duration of its ________.

Because checking accounts are ________ liquid for the depositor than savings accounts,they earn ________ interest rates.

Banks that actively manage liabilities will most likely meet a reserve shortfall by

When you deposit $50 in currency at Old National Bank

Holding large amounts of bank capital helps prevent bank failures because

The largest percentage of banks' holdings of securities consist of

Bank's make their profits primarily by issuing

Bank capital is equal to ________ minus ________.

Asset transformation can be described as

When you deposit a $50 bill in the Security Pacific National Bank

Which of the following are reported as liabilities on a bank's balance sheet?

One way for banks to reduce the principal-agent problems associated with trading activities is to

When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank,then

Which of the following is NOT an example of a backup line of credit?

If borrowers with the most risky investment projects seek bank loans in higher proportion to those borrowers with the safest investment projects,banks are said to face the problem of

When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank,then

If the First National Bank has a gap equal to a negative $30 million,then a 5 percentage point increase in interest rates will cause profits to

Which of the following are bank assets?