Exam 12: Depository Institutions: Banks and Bank Management

If a bank has more interest-rate sensitive liabilities than interest-rate sensitive assets, an increase in the interest rate will cause profits to:

Loans made in the federal funds market:

If a bank has $200 million in deposits, the required reserve rate is 10 percent and the bank has $23 million in reserves:

Regulators require a bank to hold some of its assets as reserves mainly to address:

Bank managers seem to have to walk a tightrope between managing risk and earning a profit.Explain.

If a bank sells off all of its assets and pays all of its liabilities, the amount remaining would be its:

A category of assets for banks is cash items in the process of collection.This is:

A late-night news report says the president of a local bank is about to be arrested for embezzling money from the bank at which he works.This causes most of the depositors to line up in front of the bank the next morning wanting to withdraw their deposits.This is an example of:

Which of the following bank assets would be categorized as secondary reserves?

Suppose a particular depository institution that specializes in residential mortgages is owned by its depositors.The institution is probably a:

A bank's loan loss reserves are:

Everything else equal, if the ratio of bank assets to bank capital increases, the bank's return on equity should:

A bank's reserves include:

Mergers resulting from the financial crisis of 2007-2009 have left what percentage of deposits in the hands of 4 banks?

A home buyer is presented with two options for financing the purchase of a home: a 20 year fixed rate mortgage or a 20 year adjustable-rate mortgage.Which mortgage would you expect to start at the lowest interest rate and why?

Checkable deposits have decreased since the 1970's mainly because:

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

Considering a bank's balance sheet, which of the following statements is false?

Which of the following is a bank asset?

Of the more than 8000 banks in the United States at the end of 2009, by far the greatest numbers of them were: