Which of the following would not be considered a

12. Which of the following would not be considered a commercial loan?
a. An interim construction loan
b. A working capital loan
c. A loans to another financial institution
d. A loan to purchase a piece of industrial equipment
e. A loan to the State of Illinois
Answer: a
13. A bank’s core deposits are:
14. Core deposits consist of all of the following except:
15. Jumbo certificates of deposit (CDs) typically:
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16. Which of the following is not considered a volatile liability?
a. Jumbo CDs
b. Deposits in foreign offices
c. Repurchase agreements
d. Federal funds sold
e. All of the above are considered volatile liabilities
Answer: d
17. Which of the following would be the least sensitive 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.
Answer: d
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21. Non-interest income includes all of the following except: