tb_chap09

tb_chap09 - Chapter9...

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Chapter 9 Banking and the Management of Financial Institutions 9.1 The Bank Balance Sheet 1) Which of the following statements are true? A) A bank ʹ s assets are its sources of funds. B) A bank ʹ s liabilities are its uses of funds. C) A bank ʹ s balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank ʹ s balance sheet indicates whether or not the bank is profitable. Answer: C Ques Status: Revised 2) Which of the following statements is false? A) A bank ʹ s assets are its uses of funds. B) A bank issues liabilities to acquire funds. C) The bank ʹ s assets provide the bank with income. D) Bank capital is recorded as an asset on the bank balance sheet. Answer: D Ques Status: Revised 3) Which of the following are reported as liabilities on a bank ʹ s balance sheet? A) Reserves B) Checkable deposits C) Loans D) Deposits with other banks Answer: B Ques Status: Previous Edition 4) Which of the following are reported as liabilities on a bank ʹ s balance sheet? A) Discount loans B) Reserves C) U.S. Treasury securities D) Loans Answer: A Ques Status: Revised
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Chapter 9 Banking and the Management of Financial Institutions 209 5) The share of checkable deposits in total bank liabilities has A) expanded moderately over time. B) expanded dramatically over time. C) shrunk over time. D) remained virtually unchanged since 1960. Answer: C Ques Status: Previous Edition 6) Which of the following statements is false? A) Checkable deposits are usually the lowest cost source of bank funds. B) Checkable deposits are the primary source of bank funds. C) Checkable deposits are payable on demand. D) Checkable deposits include NOW accounts. Answer: B Ques Status: Previous Edition 7) In recent years the interest paid on checkable and time deposits has accounted for around ________ of total bank operating expenses, while the costs involved in servicing accounts have been approximately ________ of operating expenses. A) 45 percent; 55 percent B) 55 percent; 4 percent C) 25 percent; 50 percent D) 50 percent; 30 percent Answer: C Ques Status: Revised 8) Which of the following statements are true? A) Checkable deposits are payable on demand. B) Checkable deposits do not include NOW accounts. C) Checkable deposits are the primary source of bank funds. D) Demand deposits are checkable deposits that pay interest. Answer: A Ques Status: Revised
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210 Mishkin · Economics of Money, Banking, and Financial Markets , Eighth Edition 9) Which of the following are transaction deposits? A) Savings accounts B) Small - denomination time deposits C) Negotiable order of withdraw accounts D) Certificates of deposit Answer: C Ques Status: Previous Edition 10) Which of the following is not a nontransaction deposit? A) Savings accounts
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tb_chap09 - Chapter9...

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