Exam 17: Commercial Bank Operations

The primary credit lending rate is determined by

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

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

Money market deposit accounts differ from conventional time deposits in that they

A commercial bank can be a lender or a borrower when using repurchase agreements and loans in the federal funds market.

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

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

Commercial banks have expanded in recent years not only by acquiring other banks but also by acquiring other types of financial service firms.

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

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

Which of the following is most appropriate for a business that may experience a sudden need for funds but does not know precisely when?

Bank capital represents funds obtained through ____ and through ____.

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

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

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

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

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

Bank rates on credit card balances are usually similar to the rate charged on business loans.

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

____ account provides checking and debit card services as well as interest.