HW6_Answer KEY

HW6_Answer KEY - NAME: _ EC370 Winter 2009 HW6 Answer KEY...

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1 NAME: ________________________________ EC370 – Winter 2009 HW6 Answer KEY Write your answers to the multiple choice questions in the appropriate space using CAPITAL LETTERS. 1) D 6) C 11) C 16) A 21) B 2) C 7) C 12) D 17) B 22) A 3) C 8) D 13) A 18) C 4) B 9) B 14) A 19) A 5) A 10) C 15) D 20) D Short Answer Questions. 1) Consider the balance sheet on page 239 (for First National Bank). Draw a T-account showing the transaction(s) FNB can execute to eliminate their gap. Any combination of transactions is acceptable as long as the gap of -30 is eliminated. This can be achieved by selling fixed rate assets to purchase rate sensitive assets, selling fixed rate liabilities to purchase rate sensitive liabilities, or some combination of the two. You should also recognize the difference b/w a balance sheet and a T-acct. 2) Ch. 10, question #3 False. Although there are many more banks in the United States than in Canada, this does not mean t hat the American banking system is more competitive. The reason for the large
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This note was uploaded on 10/17/2009 for the course EC 370 taught by Professor Staff during the Spring '08 term at Oregon.

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HW6_Answer KEY - NAME: _ EC370 Winter 2009 HW6 Answer KEY...

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