tb09 - Chapter 9 The Banking Firm and the Management of...

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Unformatted text preview: Chapter 9 The Banking Firm and the Management of Financial Institutions T Multiple Choice 1) A banks balance sheet (a) shows that total assets equals total liabilities plus equity capital. (b) lists sources and uses of bank funds. (c) indicates whether or not the bank is profitable. (d) does all of the above. (e) does only (a) and (b) of the above. Answer: E Question Status: Previous Edition 2) A banks balance sheet (a) shows that total assets equals total liabilities plus equity capital. (b) lists sources and uses of bank funds. (c) indicates whether or not the bank is solvent. (d) does all of the above. (e) does only (a) and (b) of the above. Answer: D Question Status: Previous Edition 3) Which of the following statements are true? (a) A banks assets are its sources of funds. (b) A banks liabilities are its uses of funds. (c) A banks balance sheet shows that total assets equal total liabilities plus equity capital. (d) Each of the above. Answer: C Question Status: Previous Edition 304 Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh Edition 4) Which of the following statements are true? (a) A banks assets are its uses of funds. (b) A banks liabilities are its sources of funds. (c) A banks balance sheet has the property that total assets equal the sum of total liabilities and equity capital. (d) Each of the above are true. (e) Only (a) and (b) of the above are true. Answer: D Question Status: Previous Edition 5) Which of the following statements is true? (a) A banks assets are its uses of funds. (b) A banks assets are its sources of funds. (c) A banks liabilities are its uses of funds. (d) Only (b) and (c) of the above are true. Answer: A Question Status: Previous Edition 6) Which of the following statements is false? (a) A banks assets are its uses of funds. (b) A bank issues liabilities to acquire funds. (c) The banks assets provide the bank with income. (d) Bank capital is an asset in the bank balance sheet. Answer: D Question Status: Previous Edition 7) Which of the following are reported as liabilities on a banks balance sheet? (a) Reserves (b) Checkable deposits (c) Loans (d) Deposits with other banks Answer: B Question Status: Previous Edition 8) Which of the following are reported as liabilities on a banks balance sheet? (a) Discount loans (b) Checkable deposits (c) U.S. Treasury securities (d) Only (a) and (b) of the above Answer: D Question Status: Previous Edition Chapter 9 The Banking Firm and the Management of Financial Institutions 305 9) Which of the following are reported as liabilities on a banks balance sheet? (a) Reserves (b) Small denomination time deposits (c) Loans (d) Deposits with other banks Answer: B Question Status: Previous Edition 10) Which of the following are reported as liabilities on a banks balance sheet?...
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This note was uploaded on 10/17/2011 for the course ECON 317 taught by Professor Guidry during the Spring '11 term at Nicholls State.

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tb09 - Chapter 9 The Banking Firm and the Management of...

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