Question 1

In recent years,deposits have been growing faster than nondeposit sources of funds among U.S.banks.

Accepted Answer

A) True 
 B)False

Question 2

Dollar denominated CDs issued by banks outside the United States are known as:

Accepted Answer

A) Domestic CDs. 
B) Euro CDs. 
C) Yankee CDs. 
D) Commercial paper. 
E) None of the options is correct. 
A) Domestic CDs. 
B) Euro CDs. 
C) Yankee CDs. 
D) Commercial paper. 
E) None of the options is correct.

Question 3

Which of the following is a factor that affects a bank's decision as to which nondeposit sources of funds to use to cover its projected funds gap?

Accepted Answer

A) The relative cost of raising the funds. 
B) The length of time the funds will be required. 
C) The risk associated with each source of funds. 
D) The size of the bank. 
E) All of the options are correct. 
A) The relative cost of raising the funds. 
B) The length of time the funds will be required. 
C) The risk associated with each source of funds. 
D) The size of the bank. 
E) All of the options are correct.

Question 4

Interest rates in the Repurchase Agreement (RP)market are quoted on a 360-day basis.

Accepted Answer

A) True 
 B)False

Question 5

An agreement where one party agrees to sell T-bills to another party and at the same time agrees to buy them back at a future date for set price is known as a:

Accepted Answer

A) repurchase agreement. 
B) commercial paper. 
C) term loan. 
D) negotiable CD. 
E) None of the options is correct 
A) repurchase agreement. 
B) commercial paper. 
C) term loan. 
D) negotiable CD. 
E) None of the options is correct

Question 6

Which of the following is one of the disadvantages of following the customer relationship doctrine?

Accepted Answer

A) High interest costs on loans 
B) Negative returns on loans 
C) Poor credit scores of customers 
D) Fewer loyal customers 
E) Low service fees 
A) High interest costs on loans 
B) Negative returns on loans 
C) Poor credit scores of customers 
D) Fewer loyal customers 
E) Low service fees

Question 7

Repurchase Agreements (RPs)are very similar to Federal funds and are often viewed as ____________ Federal funds transactions.

Accepted Answer

The answer of Repurchase Agreements (RPs)are very similar to Federal...

Question 8

CDs issued by nonbank savings institutions are called:

Accepted Answer

A) thrift CDs. 
B) domestic CDs. 
C) EURO CDs. 
D) Yankee CDs. 
E) variable rate CDs. 
A) thrift CDs. 
B) domestic CDs. 
C) EURO CDs. 
D) Yankee CDs. 
E) variable rate CDs.

Question 9

As per liability management banking,the control lever to regulate the liabilities and assets on the balance sheet is

Accepted Answer

A) management discretion. 
B) the volume of loan demand the bank faces. 
C) deposit growth. 
D) market interest rates. 
E) None of the options is correct. 
A) management discretion. 
B) the volume of loan demand the bank faces. 
C) deposit growth. 
D) market interest rates. 
E) None of the options is correct.

Question 10

CDs that are sold by some of the largest foreign banks through their U.S.branches are called:

Accepted Answer

A) thrift CDs. 
B) domestic CDs. 
C) EuroCDs. 
D) Yankee CDs. 
E) None of the options is correct. 
A) thrift CDs. 
B) domestic CDs. 
C) EuroCDs. 
D) Yankee CDs. 
E) None of the options is correct.

Question 11

Longer-term federal funds contracts lasting several days,weeks,or months,often accompanied by a written contract,are called continuing contracts.

Accepted Answer

A) True 
 B)False

Question 12

When the first priority of a bank is to make loans to all good quality loan customers it is following the _________________________ doctrine.

Accepted Answer

customer r

Question 13

With liability management,institutions in need of more funds to cover expanding loan commitments or deficiencies in the cash reserves can ______________________ to reduce their volume of money market borrowings.

Accepted Answer

A) lower their offer rate 
B) lower their bid rate 
C) raise their bid rate 
D) raise their offer rate 
E) reduce cutoff for minimum credit score required to grant loans 
A) lower their offer rate 
B) lower their bid rate 
C) raise their bid rate 
D) raise their offer rate 
E) reduce cutoff for minimum credit score required to grant loans

Question 14

The First State Bank of Summerville knows that,if it issues commercial paper through a subsidiary,tight money supply conditions in the market may result in the interest rate on the commercial paper to be very high.What factor that affects a bank's use of nondeposit sources of funds is the bank concerned about?

Accepted Answer

A) The relative cost of raising the funds 
B) The length of time the funds will be required 
C) The risk associated with each source of funds 
D) The size of the bank 
E) Regulations 
A) The relative cost of raising the funds 
B) The length of time the funds will be required 
C) The risk associated with each source of funds 
D) The size of the bank 
E) Regulations

Question 15

Which of the following is not an advantage of using a repurchase agreement?

Accepted Answer

A) The bank gains excess reserves which can be used to make new deposits. 
B) The bank makes use of high-quality but low yielding assets without losing them permanently. 
C) If the agreement is made with a bank which keeps a checkable deposit with another bank,it can reduce both the bank's deposits and reserve requirements. 
D) The interest rate the bank has to pay is usually low. 
E) All of the options are advantages of using a repurchase agreement. 
A) The bank gains excess reserves which can be used to make new deposits. 
B) The bank makes use of high-quality but low yielding assets without losing them permanently. 
C) If the agreement is made with a bank which keeps a checkable deposit with another bank,it can reduce both the bank's deposits and reserve requirements. 
D) The interest rate the bank has to pay is usually low. 
E) All of the options are advantages of using a repurchase agreement.

Question 16

The doctrine that the first priority of a bank is to make loans to all those customers from whom the bank expects to receive positive net earnings is called the:

Accepted Answer

A) funds management doctrine. 
B) customer relationship doctrine. 
C) loan priority doctrine. 
D) revenue flows doctrine. 
E) None of the options is correct. 
A) funds management doctrine. 
B) customer relationship doctrine. 
C) loan priority doctrine. 
D) revenue flows doctrine. 
E) None of the options is correct.

In recent years,deposits have been growing faster than nondeposit sources of funds among U.S.banks.

Dollar denominated CDs issued by banks outside the United States are known as:

Which of the following is a factor that affects a bank's decision as to which nondeposit sources of funds to use to cover its projected funds gap?

Interest rates in the Repurchase Agreement (RP)market are quoted on a 360-day basis.

An agreement where one party agrees to sell T-bills to another party and at the same time agrees to buy them back at a future date for set price is known as a:

Which of the following is one of the disadvantages of following the customer relationship doctrine?

Repurchase Agreements (RPs)are very similar to Federal funds and are often viewed as ____________ Federal funds transactions.

CDs issued by nonbank savings institutions are called:

As per liability management banking,the control lever to regulate the liabilities and assets on the balance sheet is

CDs that are sold by some of the largest foreign banks through their U.S.branches are called:

Longer-term federal funds contracts lasting several days,weeks,or months,often accompanied by a written contract,are called continuing contracts.

When the first priority of a bank is to make loans to all good quality loan customers it is following the _________________________ doctrine.

With liability management,institutions in need of more funds to cover expanding loan commitments or deficiencies in the cash reserves can ______________________ to reduce their volume of money market borrowings.

Which of the following is not an advantage of using a repurchase agreement?

The doctrine that the first priority of a bank is to make loans to all those customers from whom the bank expects to receive positive net earnings is called the:

An Overview of the Changing Financial-Services Sector

The Impact of Government Policy and Regulation on the Financial-Services Industry

The Organization and Structure of Banking and the Financial-Services Industry

Establishing New Banks, Branches, ATMs, Telephone Services, and Websites

The Financial Statements of Banks and Their Principal Competitors

Measuring and Evaluating the Performance of Banks and Their Principal Competitors

Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques

Investment Banking,Insurance,and Other Sources of Fee Income

Risk Management: Asset-Backed Securities, Loan Sales, Credit Standbys, and Credit Derivatives

The Investment Function in Financial-Services Management

Liquidity and Reserves Management: Strategies and Policies

Managing and Pricing Deposit Services

Investment Banking, insurance, and Other Sources of Fee Income

The Management of Capital

Lending Policies and Procedures: Managing Credit Risk

Lending to Business Firms and Pricing Business Loans

Consumer Loans, Credit Cards, and Real Estate Lending

Acquisitions and Mergers in Financial-Services Management

International Banking and the Future of Banking and Financial Services

Filters

Exam 13: Managing Nondeposit Liabilities

In recent years,deposits have been growing faster than nondeposit sources of funds among U.S.banks.

Dollar denominated CDs issued by banks outside the United States are known as:

Which of the following is a factor that affects a bank's decision as to which nondeposit sources of funds to use to cover its projected funds gap?

Interest rates in the Repurchase Agreement (RP)market are quoted on a 360-day basis.

An agreement where one party agrees to sell T-bills to another party and at the same time agrees to buy them back at a future date for set price is known as a:

Which of the following is one of the disadvantages of following the customer relationship doctrine?

Repurchase Agreements (RPs)are very similar to Federal funds and are often viewed as ____________ Federal funds transactions.

CDs issued by nonbank savings institutions are called:

As per liability management banking,the control lever to regulate the liabilities and assets on the balance sheet is

CDs that are sold by some of the largest foreign banks through their U.S.branches are called:

Longer-term federal funds contracts lasting several days,weeks,or months,often accompanied by a written contract,are called continuing contracts.

When the first priority of a bank is to make loans to all good quality loan customers it is following the _________________________ doctrine.

With liability management,institutions in need of more funds to cover expanding loan commitments or deficiencies in the cash reserves can ______________________ to reduce their volume of money market borrowings.

Which of the following is not an advantage of using a repurchase agreement?

The doctrine that the first priority of a bank is to make loans to all those customers from whom the bank expects to receive positive net earnings is called the:

An Overview of the Changing Financial-Services Sector

The Impact of Government Policy and Regulation on the Financial-Services Industry

The Organization and Structure of Banking and the Financial-Services Industry

Establishing New Banks, Branches, ATMs, Telephone Services, and Websites

The Financial Statements of Banks and Their Principal Competitors

Measuring and Evaluating the Performance of Banks and Their Principal Competitors

Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques

Investment Banking,Insurance,and Other Sources of Fee Income

Risk Management: Asset-Backed Securities, Loan Sales, Credit Standbys, and Credit Derivatives

The Investment Function in Financial-Services Management

Liquidity and Reserves Management: Strategies and Policies

Managing and Pricing Deposit Services

Investment Banking, insurance, and Other Sources of Fee Income

The Management of Capital

Lending Policies and Procedures: Managing Credit Risk

Lending to Business Firms and Pricing Business Loans

Consumer Loans, Credit Cards, and Real Estate Lending

Acquisitions and Mergers in Financial-Services Management

International Banking and the Future of Banking and Financial Services

Filters