ch03-2 - Chapter 3 Analyzing Bank Performance Using the...

Chapter 3
Analyzing Bank Performance: Using the UBPR
Multiple Choice
1. Which of the following is not part of the CAMELS ratings?
a. Capital adequacy.
b. Asset quality.
c. Earnings quality.
d. Liabilities quality.
e. Sensitivity to market risk.
Answer: d
2. The largest component of “non- interest cash and due from banks” is:
3. Which of the following is not a 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 bill
b. Vault cash
c. Cash items in process of collection
d. Municipal bond
e. Repurchase agreements
Answer: d
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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 loans
and leases?
a. The loan and lease loss allowance is subtracted from gross loans
b. Unearned income is subtracted from gross interest received
c. Investment income is added to gross interest received
d.
Answer: d
a. and b.
e. a. and c.
10. Which of the following is are only available to non-commercial customers?
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11. A loan to an individual to purchase a home would be considered to be a: