Rates paid on MMDAs are generally higher than rates on money market mutual

Rates paid on mmdas are generally higher than rates

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Rates paid on MMDAs are generally higher than rates on money market mutual funds. Question 12 0 / 1 point Which of the following would be an example of a Eurodollar account? A U.S. dollar denominated deposit held at a Japanese bank. A British pound denominated deposit held at a New York bank. A French franc denominated deposit held at a Toronto bank. A U.S. dollar denominated deposit held at a Chicago bank. A EMU euro denominated deposit held at a London bank. Question 13 1 / 1 point In regards to repurchase agreements, the margin is: a good faith deposit. a loan against the repurchase agreement. a risk-free guarantee. the difference between the market value of the collateral and the amount of the loan. all of the above. Question 14 0 / 1 point Small time deposits are characterized by all of the following except : they have denominations are less than $100,000. they have substantial interest penalties for early withdrawal. banks can pay market interest rates on them. there is a substantial interest penalty for early withdrawal. they have a minimum maturity of 3 days. Question 15 0 / 1 point A jump rate CD is also known as a(n): trust CD. zero coupon CD.
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bump-up CD. federal funds CD. fixed-rate CD. Question 1 1 / 1 point CDs sold at a steep discount from par and appreciate to face value at maturity are known as: zero coupon CDs. variable rate CDs. callable CDs. stock market indexed CDs. immediately available funds CDs Question 2 1 / 1 point Large time deposits are generally referred to as: mini CDs. jumbo CDs. big CDs. giant CDs. super CDs. Question 3 0 / 1 point Which of the following is primarily used as collateral for borrowings from the Federal Home Loan Bank Board? Real estate loans Treasury securities Negotiable CDs Credit card receivables Repurchase agreement
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Question 4 1 / 1 point Interest costs do not equal the effective cost of bank liabilities because: reserve requirements increase the effective cost. there may be substantial processing costs. service charges may offset a portion of non-interest expense. all of the above. a. and c. Question 5 1 / 1 point ___________ includes common stock, preferred stock and retained earnings. Retail funding Wholesale funding Borrowed funding Equity funding Lockbox funding Question 6 0 / 1 point On-us checks cashed are: checks drawn on any bank other than the bank into which it was deposited. the accounting transaction for selling fed funds. discount window loans. illegal. checks drawn on a bank's own customer's account. Question 7 0 / 1 point A bank estimates that their average balance on demand deposit accounts is $2,500, net of float. Each account costs the bank $175 per year in processing costs. The bank collects an average of $5 per month on each account in service charges. Assume reserve requirements are 10%. If the bank can invest the deposit balance (after adjusting for reserve requirements) at 7%, what is the break-even deposit balance?
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