ch5 - ch5 Student 1 Fed funds purchased is an example of...

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ch5 Student: ___________________________________________________________________________ 1. Fed funds purchased is an example of _______________________ along with Eurodollar borrowings. ________________________________________ 2. The short term securities of the bank, including T-Bills and commercial paper, are often called __________________________ because they are the second line of defense to meet demands for cash. ________________________________________ 3. __________________________ is a noncash expense on the bank's income statement which allows the bank to account for future bad loans. ________________________________________ 4. __________________________ is the difference between interest income and interest expenses for a financial institution. ________________________________________ 5. __________________________ are the primary long term liabilities of the bank. These liabilities are paid only after deposits have been paid in the event of bankruptcy. ________________________________________ 6. A(n)__________________________ is where the financial institution agrees to guarantee repayment of a customer's loan received from a third party. ________________________________________ 7. A(n)__________________________ is a short term collateralized loan. The collateral that is used generally consists of T-Bills. ________________________________________ 8. A(n)__________________________ is a deposit account which pays an interest rate competitive with money market mutual funds and which generally has limited check writing ability. ________________________________________ 9. _____________________ is the sum of all outstanding IOU's owed to the bank in the form of consumer, real estate, commercial and agriculture loans as well as other types of credit extensions. ________________________________________ 10. A financial institution often records the value of its assets and liabilities at _______________ which is the original or historical cost of the asset. ________________________________________ 1
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11. The principal types of__________________________ include fee income, income from fiduciary activities and services charges on deposits. ________________________________________ 12. The__________________________ shows the amount of revenues received and expenses incurred over a specific time period. ________________________________________ 13. The__________________________ lists the assets, liabilities and equity capital held by the bank on a given date. ________________________________________ 14. ________________ aims to restore public confidence in the wake of the accounting fiascos visible to the public from as firms as J.P. Morgan Chase. ________________________________________ 15. ______________ is labeled "Accounting for Derivative Instruments and Hedging Activities." ________________________________________ 16. Under _____________ banks must account for the expected loss of interest income on nonperforming loans when calculating their loan-loss provision. ________________________________________ 17. Temporarily buying and selling securities by a securities firm in a thinly traded market so as to influence
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This note was uploaded on 10/15/2008 for the course FINA 4443 taught by Professor Mattews during the Fall '08 term at Texas A&M.

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ch5 - ch5 Student 1 Fed funds purchased is an example of...

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