Exam 13: Managing Nondeposit Liabilities

The largest unregulated financial market place in the world is the:

The most popular domestic source of borrowed reserves for U.S.banks is:

Primary credit is defined as loans available for short terms and normally considered beneficial for the borrower because it carries an interest rate slightly below the target Fed funds rate.

One of the factors to consider when a bank chooses among the nondeposit funding sources is the relative cost.In general,managers prefer to borrow from the cheapest source of funds,although other factors do play a role.

The traditional and principal source of bank funds is deposits.

The ___________________________ System provides access to nondeposit borrowings to depository institutions.These borrowings are fully collateralized by home mortgages and have maturities ranging from overnight to 20 years.

Longer-term federal funds contracts lasting several days,weeks,or months,often accompanied by a written contract,are known as:

In addition to the Federal Reserve,the other governmental agency that has also been loaning large amounts of money to banks and thrift institutions is the:

Which of the following is an advantage of a General Collateral Finance RP?

One of the three types of loans in the Fed Funds market,__________________ loans are unwritten agreements,negotiated via wire or telephone,with the borrowed funds returned the next day.

One of the three types of loans in the Fed Funds market,__________________ loans are longer-term Fed funds contracts lasting several days,weeks or months,often accompanied by a written contract.

Liability management is considered to be an interest-sensitive approach to raising bank funds.

Nondeposit funds do have the advantage of quick availability compared to most types of deposits,but are not as stable a funding source for banks as are time and savings deposits.

Negotiable CDs are restricted to short maturities-from seven days to one or two years.

Funds raised by the use of liability management techniques are considered to be flexible.

Common nondeposit borrowings of a bank are _____-term rather than ______-term debt.

Time deposits with minimum denominations of $100,000 are generally referred to as:

A federal funds loan that is automatically renewed each day unless either the borrower or the lender decides to end the loan agreement is known as a(n):

All of the following types of loans are available through the discount window except:

Short-term notes,with maturities ranging from 3 days to 9 months,issued by well-known companies are known as: