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6 - 2B Marks 1 27 Marks 1 2B Marks 1 29 Marks 1 30 Marks 5...

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Unformatted text preview: 2B Marks 1 27 Marks 1 2B Marks 1 29 Marks 1 30 Marks 5 Page: (Previous) l 2 3 4 5 B 7 (Next) Use Table 4. National Bank has the following balance sheet. Assume thelr net profit alter tax is $1.Efifl,l][ll] Calculate the banks ROE. Table 4 m Liabilities Reserves $25m Deposits $1lllJm Loans $?5m Bank Capital $10M Securities 51 Elm 3.155% b 11% Choose one answer. c 10% r’l d 15% What would be the result itbanks were required to hold llillt‘lfi reserves? Choose one answer a Bank would only store money and not make loans. {'1 b. Bank lending would be limited ("l c Banking panics would decrease but still exist. l; j d. Bank reserves would fall. Determine whether the below statements are true or false I Banks with less capital have greater incentive to take n‘sks. ll. Restrictions on bank asset holdings are designed to decrease bank risk taking. Choose one answer. a. l and ll are both true. b l is true; llfalse c l and II are both false. ('3 d l is false; ll is true. According to the video we watched why did the goldsmlth loan out more than they had in gold? Choose one answer Q a Depositors knew how much total gold the goldsrnlth held. Q b. Depositors regularly exchanged their notes for gold. I: Depositors rarely came lnto the bank to exchange notes tor gold d. All of the Above. Based on the videos we have seen how did the fraotlonal raerve banking system come about? The banking system did not start using fractional reserves but it evolved to become fractional reserve banking. How did the videos explain why? Answer V Size" BIQabe X2?!) if, Elmage DTable jTemplates -\;.~ A' O ll'l r-1 tr In the gold standard backed try gold Now the dollar is backed by the US govennent, ifyou trust US goverrnent, the money supply effectively, it dose not matter that we went ol't the gold flandard yard. If you don't , then buy gold. Use Ctrt+V to paste. Save without submitting Submit al and finish Page: (Previous) l 2 3 4 5 B 7 (Next) You are logged in as Chen Sheri (Layout) SAN FRAN' S1.“ E UNIVEM About the HTML edltor ® ...
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