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Unformatted text preview: ch13 Student: ___________________________________________________________________________ 1. Dollar denominated CDs issued outside the U.S. are called _________________________. ________________________________________ 2. The CDs large foreign banks sell through their U.S. branches are called _________________________. ________________________________________ 3. When a bank buys funds from other financial institutions in order to cover good quality loan demand and to satisfy deposit reserve requirements they are practicing _________________________. ________________________________________ 4. When the first priority of a bank is to make loans to all good quality loan customers they are following the _________________________. ________________________________________ 5. Originally __________________ consisted exclusively of deposits held by U.S. banks at the Federal Reserve banks which were loaned from one bank to another. ________________________________________ 6. _________________________ is the short-term notes, with maturities ranging from 3 to 4 days to 9 months, issued by well known companies. ________________________________________ 7. A _________________________ is the temporary sale of high-quality, easily-liquidated assets accompanied by the agreement to buy back those assets on a future specific date at a predetermined price. ________________________________________ 8. Because the interest rate on CDs, commercial paper and other nondeposit borrowings (except borrowings from the Federal Reserve discount window) are determined by supply and demand conditions in the market they all face __________________ risk. ________________________________________ 9. The spread between current and expected loans and investments and the current and expected deposit inflows and other sources of funds is known as the _________________________. ________________________________________ 10. A(n) _________________________ is an interest bearing receipt for funds issued by a bank with a minimum denomination of $100,000. ________________________________________ 1 11. Because there is a danger that the bank in need of funds will not be able to find someone willing to grant the bank a loan at a reasonable rate, they face _________________________. ________________________________________ 12. The Federal Reserve will make loans through its _________________________. ________________________________________ 13. The securities most often used in a repurchase agreement are _________________________. ________________________________________ 14. Virtually all nondeposit borrowing of a bank are ______-term rather than _______-term debt. ________________________________________ 15. Repurchase Agreements (RPs) are very similar to Federal Funds and are often viewed as ____________ federal funds transactions....
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This note was uploaded on 11/17/2008 for the course FINA 4443 taught by Professor Mattews during the Fall '08 term at Texas A&M.
- Fall '08