Chapter 6
Measuring and Evaluating the Performance of Banks and Their Principal Competitors家长对老师说>寒气重怎么调理
Fill in the Blank Questions
1. The equity multiplier for a bank measures the amount of _____________________ of the bank and is one part of the evaluation of the bank's ROE.
Answer: leverage (debt)
2. __________________________ is the risk that has to do with the quality of the bank's asts and, in particular, the bank's loans.
Answer: Credit risk
3. Solvency (or capital) risk for a bank can be measured by__________________________. List one way solvency risk can be measured.
Answer: Purchad Funds/Total Liabilities (There are veral other ratios that can answer this question as well) 金银岛网交所
4. __________________________ are the asts of a financial institution that will mature or be repriced within a t period of time.
Answer: Interest Sensitive Asts
5. __________________________ is the risk that the value of the financial institution's ast portfolio (particularly government or other marketable curities) will decline in value.
Answer: Market risk
6. Eurodollars, Fed Funds, Repurcha Agreements, and large CDs together are know as _____________________.
元认知能力Answer: Purchad Funds
7. __________________________ is the risk that the financial institution may not be able to meet the needs of depositors for cash.
Answer: Liquidity risk
8. __________________________ are loans which are past due by 90 days or more.
Answer: Nonperforming loans
9. __________________________ reflects the bank's portfolio management policies and the mix and yield on the bank's curities and is one part of the evaluation of ROE.
Answer: Ast utilization
10. __________________________ reflects the effectiveness of the expen management of the bank and is one part of the evaluation of ROE.
Answer: Net profit margin
11. __________________________ measures the return to stockholders on their investment in the bank. It is the product of net profit margin, ast utilization and the equity multiplier.
Answer: ROE stand是什么意思
12. __________________________ measures the amount of debt or leverage a bank has and is one part of the evaluation of the bank's ROE) It is generally a number larger than one. 经典心理测试
Answer: Equity multiplier
13. The__________________________ is a standardized report provided by federal regulators which reports the balance sheet, income statement and other data for all federally supervid banks. It has this year's data as well as three previous years and also contains information on peer institutions.
Answer: Uniform Bank Performance Report
14. __________________________ measures the bank's risk of long run survival. It measures the bank's capital position and shows if there has been any erosion of capital over time.
Answer: Solvency risk (or capital risk)
15. __________________________ is the risk that shifting interest rates in the market will adverly affect a financial institution's net income or the value of its asts or equity.
Answer: Interest rate risk
16. The ____________________ Act restricts combined auditing and consulting relationships in order to promote auditor independence and objectivity.
Answer: Sarbanes-Oxley
17. is one of the most widely respected private institutions that rates the credit quality of financial institutions.
Answer: Thomson’s BankWatch, Inc.
18. refers to the uncertainty regarding the financial firm’s earnings due to failures in computer systems, errors, misconduct by employees, lightening strikes and similar events.
Answer: Operational (transactional) risk
19. refers to variability in earnings resulting from actions taken by the legal system including unenforceable contracts, lawsuits and adver judgements.
下奶的食物Answer: Legal risk
20. 干蕨菜 includes violations of rules and regulations. It can include failure to hold adequate capital which can lead to costly corrective actions.
Answer: Compliance risk
21. is the uncertainty associated with public opinion. Negative publicity (whether true or not) can affect a financial firm’s earnings by dissuading customers from using the rvices of the institution.