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Unformatted text preview: ch6,7 Student: ___________________________________________________________________________ 1. The equity multiplier for a bank measures the amount of _____________________ of the bank and is one part of the evaluation of the bank's ROE. ________________________________________ 2. __________________________ is the risk that has to do with the quality of the bank's assets and, in particular, the bank's loans. ________________________________________ 3. Solvency (or capital) risk for a bank can be measured by__________________________. List one way solvency risk can be measured. ________________________________________ 4. __________________________ are the assets of a financial institution that will mature or be repriced within a set period of time. ________________________________________ 5. __________________________ is the risk that the value of the financial institution's asset portfolio (particularly government or other marketable securities) will decline in value. ________________________________________ 6. Eurodollars, Fed Funds, Repurchase Agreements, and large CDs together are know as _____________________. ________________________________________ 7. __________________________ is the risk that the financial institution may not be able to meet the needs of depositors for cash. ________________________________________ 8. __________________________ are loans which are past due by 90 days or more. ________________________________________ 9. __________________________ reflects the bank's portfolio management policies and the mix and yield on the bank's securities and is one part of the evaluation of ROE. ________________________________________ 10. __________________________ reflects the effectiveness of the expense management of the bank and is one part of the evaluation of ROE. ________________________________________ 1 11. __________________________ measures the return to stockholders on their investment in the bank. It is the product of net profit margin, asset utilization and the equity multiplier. ________________________________________ 12. __________________________ measures the amount of debt or leverage a bank has and is one part of the evaluation of the bank's ROE. It is generally a number larger than one. ________________________________________ 13. The__________________________ is a standardized report provided by federal regulators which reports the balance sheet, income statement and other data for all federally supervised banks. It has this year's data as well as three previous years and also contains information on peer institutions. ________________________________________ 14. __________________________ measures the bank's risk of long run survival. It measures the bank's capital position and shows if there has been any erosion of capital over time....
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- Fall '08