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12. Which of the following would notbe considered a commercial loan?a.An interim construction loanb.A working capital loanc.A loans to another financial institutiond.A loan to purchase a piece of industrial equipmente.A loan to the State of IllinoisAnswer: a13. A bank’s core deposits are:14. Core deposits consist of all of the following except: 15. Jumbo certificates of deposit (CDs) typically:20
16. Which of the following is notconsidered a volatile liability?a.Jumbo CDsb.Deposits in foreign officesc.Repurchase agreementsd.Federal funds solde.All of the above are considered volatile liabilitiesAnswer: d17. Which of the following would be the leastsensitive to changes in interest rates?18. The “provision for loan and lease losses”:19. A bank’s “burden” is defined as:20. Everything else the same, a bank’s “burden” would most likely increase given:a.a decrease in overhead expenses.b.an increase in interest rates.c.a decrease in interest rates.d.an increase in executive salaries.e.
an increase in service charges collected by the bank.
21. Non-interest income includes all of the following except: