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Unformatted text preview: 6 * Which of the following correctly portrays a bank's balance sheet ? Total bank assets = Total bank liabilities + Total bank Capital 7 * Banks do not hold a lot of their assets in the form of cash mainly because of : The opportunity cost of holding cash; cash does not earn interest . 8 * Which of the following is a bank liability ? Demand deposit . 9 * Secondary reserves for banks are : Mainly the bank's liquid securities . Unit 5 ( Depository institutions : Banks and Bank management ( 10 * A bank reserves include : Vault cash AND the bank's deposits at the federal reserve . 11 * One thing that is common for all bank loans is : They are part of the banks' assets ....
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.
- Spring '11