Exam 10: Banking and the Management of Financial Institutions

If a bank needs to raise the amount of capital relative to assets,a bank manager might choose to

Examples of off-balance-sheet activities include

All of the following are examples of off-balance sheet activities that generate fee income for banks except

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

If a bank has ________ rate-sensitive assets than liabilities,a ________ in interest rates will reduce bank profits,while a ________ in interest rates will raise bank profits.

One of the problems in conducting a duration gap analysis is that the duration gap is calculated assuming that interest rates for all maturities are the same.That means that the yield curve is

Your bank has the following balance sheet What would happen to bank profits if the interest rates in the economy go down? Is there anything that you could do to keep your bank from being so vulnerable to interest rate movements?

Which of the following statements most accurately describes the task of bank asset management?

Modern liability management has resulted in

Which of the following are not reported as assets on a bank's balance sheet?

Risk that is related to the uncertainty about interest rate movements is called

All else the same,if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets,then ________ in interest rates will ________ bank profits.

Which of the following are bank assets?

Because ________ are less liquid for the depositor than ________,they earn higher interest rates.

Use the following table to answer the questions: -If interest rates rise by 5 percentage points,say,from 10 to 15%,bank profits (measured using gap analysis)will

Secondary reserves are so called because

Because of their ________ liquidity,________ U.S.government securities are called secondary reserves.

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?

In order to reduce the ________ problem in loan markets,bankers collect information from prospective borrowers to screen out the bad credit risks from the good ones.