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Chapter 3Analyzing Bank Performance: Using the UBPRMultiple Choice1.Which of the following is notpart of the CAMELS ratings?a.Capital adequacy.b.Asset quality.c.Earnings quality.d.Liabilities quality.e.Sensitivity to market risk.Answer: d2.The largest component of “non- interest cash and due from banks” is:3.Which of the following is nota characteristic of a typical commercial bank?4.Which of the following would a bank generally classify as a short-term investment?5.Which of the following would a bank generally classify as a long-term investment?a.Treasury billb.Vault cashc.Cash items in process of collectiond.Municipal bonde.
6.The volume of net deferred credit is commonly referred to as:7.Banks generate their largest portion of income from:8.Which of the following bank assets is the most liquid ?9.Which of the following adjustments are made to gross loans and leases to obtain net loansand leases?a.The loan and lease loss allowance is subtracted from gross loans b.Unearned income is subtracted from gross interest receivedc.Investment income is added to gross interest receivedd.Answer: da. and b.e.a. and c.10. Which of the following is are only available to non-commercial customers?
11. A loan to an individual to purchase a home would be considered to be a: