Final Exam Part 5 explores key aspects of U. S. Commercial banks' balance sheets, including asset categories, liabilities, and bank reserves. It assesses understanding of financial structures and their significance in banking operations, crucial for anyone studying or working in finance.
Borrowing from other banks in the U.S.
Savings deposits and time deposits
Checkable deposits
Borrowings from non-banks in the U.S.
Rate this question:
About 5 times the total assets
About 1/11 of total assets
Just about the same as total assets
About the same as total liabilities
Rate this question:
Vault cash
U.S. Treasury Securities
The bank's loan portfolio
U.S. Treasury bills and vault cash
Rate this question:
The same as the bank's net worth
Mainly the bank's liquid securities
Vault cash
Deposits the bank has at the Federal Reserve
Rate this question:
Securitized
Liquid
Part of the banks' assets
Unsecured
Rate this question:
Regulators allowed higher rates to be paid on these accounts and banks found them to be highly unprofitable
People prefer to use credit cards rather than writing checks
These deposit accounts offer little or no interest so depositors find them to be expensive
As banks added fees to these accounts people increased their holdings of currency
Mortgage loans
Demand deposits
Reserves
U.S. Treasury securities
Rate this question:
Have a need for long-term financing
Need cash for a very short period of time
Have negative net worth
Cannot obtain financing from any other source
Rate this question:
Risk increases and its leverage decreases
Liabilities decrease and its leverage increases
Leverage decreases and its liabilities increase
Leverage and risk increases
Rate this question:
10 to 1
5 to 1
9 to 1
0.1 to 1
Rate this question:
Remain constant
Decrease
Increase
Cannot be determined from the information provided
Rate this question:
The difference between gross income and net income after taxes
The interest banks earn from uses of funds
The difference between interest income and interest expense
The difference between interest income and total expenses
Rate this question:
Dividing the bank's net profit after taxes by the bank's capital
Dividing the banks liabilities by the bank's capital
Taking the bank's assets plus the net profit after taxes and dividing this sum by the bank's capital
Dividing the bank's net profit after taxes by the sum of the bank's assets and its liabilities
Rate this question:
Liquidity risk
Operational risk
Interest rate risk
Credit risk
Rate this question:
Profits
Net interest income
Excess reserves
Vault cash
Rate this question:
The bank is short of required reserves
The bank has excess reserves of $27.5 million
The bank has excess reserves of $5 million
The bank has excess reserves of $3 million
Rate this question:
Hold a lot in highly liquid securities
Make sure that most of its assets are in small business loans
Have a high ratio of loans to securities
Limit withdrawals by customers
Rate this question:
Bank A's assets decrease and Bank B's assets increase
Bank A becomes less liquid while Bank B becomes more liquid
Banks A's total assets do not change, but Bank A is more liquid
Bank A's liabilities decrease by the amount of the loans that are sold
Rate this question:
The asset side of their balance sheet
The liabilities side of the balance sheet
The amount of bank capital
The asset and liabilities side of the balance sheet
Rate this question:
The supply of dollars to increase
The demand for dollars to increase
The demand for dollars to decrease
The dollar to depreciate now relative to other currencies
Rate this question:
The demand for dollars to increase
The supply of dollars to decrease
The supply of dollars to increase
The dollar to appreciate
Rate this question:
Buys euros or sells dollars
Sells euros or buys dollars
Buys both euros and dollars at the same time
Sells both euros and dollars at the same time
Rate this question:
A decrease in the demand for dollars
An increase in the demand for dollars
An increase in the supply of euros
An increase in the demand for dollars and an increase in the supply of euros
Rate this question:
Alters banking system reserves
Changes domestic interest rates
Results in a fixed exchange rate
Alters banking system reserves and it changes domestic interest rates
Rate this question:
The dollar depreciates
The euro depreciates
Both the dollar and the euro depreciate
The dollar appreciates and the euro depreciates
Rate this question:
Alter the asset side of a central bank's balance sheet but leave the domestic monetary base unchanged
Alter the liability side of the central bank's balance sheet but leave the asset side unchanged
Leave the central bank's balance sheet unchanged
Not alter the central bank's holdings of international reserves
Rate this question:
An unsterilized foreign exchange intervention
The Fed not changing their balance sheet at all
A sterilized foreign exchange intervention
The Fed altering the domestic monetary base
Rate this question:
Sold U.S. Treasury bonds
Bought U.S. Treasury bonds
Bought dollars
Sold dollars
Rate this question:
It makes imports less expensive
It establishes a credible low inflation policy
It unties policymakers' hands so they can alter the reserves of the banking system as needed
Policymakers will have increased control over domestic interest rates
Rate this question:
Decreases central bank policy accountability and transparency
Strengthens domestic interest rate policy
Will likely make domestic inflation more volatile
Imports monetary policy
Rate this question:
Their central bank will reduce the domestic interest rate in order to fend off the slowdown
Their currency will depreciate to stimulate exports
Their bonds will become less attractive to foreign investors
The stabilization mechanism that policy makers could have used is completely shut down
Rate this question:
Quiz Review Timeline (Updated): Apr 15, 2024 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
Wait!
Here's an interesting quiz for you.