Exam 12: Depository Institutions: Banks and Bank Management

The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:

The difference between a bank's reserves and its required reserves is:

Considering the balance sheet for all commercial banks in the U.S., the largest category of liabilities is:

Explain why non-transactions accounts have become a more important source of funds for the bank than transaction accounts over the past thirty years?

A bank that specializes in granting loans to firms in a specific line of business:

The federal funds market:

If a bank has $100 million in assets and a net worth of $10 million, its debt-to-equity ratio is:

The practice of "redlining" in bank lending is clearly an example of discrimination in lending.Agree or disagree? Why?

A bank's off-balance-sheet activities usually:

If a bank's return on equity remains constant, but the ratio of bank assets to bank capital decreases:

Which of the following is not a bank liability?

The primary difference among various kinds of depository institutions is in the composition of their loan portfolios Agree or disagree? Explain.

One thing that is common for all bank loans is that they are:

Which of the following statements best completes this sentence: "On a bank's balance sheet¼."?

If a bank increases its assets by adding $1 to capital for every $1 added to assets:

The primary difference in certificates of deposit (CDs) that are equal to or less than $100,000 and those over $100,000 (other than the amount) is:

What should be the impact on a bank's return on assets and return on equity from increased use of off-balance-sheet activities?

Banks tend not to hold a lot of excess reserves because:

A bank's Return on Assets (ROA) is calculated by dividing:

Which of the following correctly portrays a bank's balance sheet?