Chapter 9
Exerci:
Ⅰ.Key terms
1. discount loan 2. capital adequancy management 3. interest-rate risk
4. discount rate 5. ROA 6. EM 7. ROE 8. Compensating balance
9. Gap analysis 10. Off-balance-sheet activities
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Ⅱ. Multiple Choice：
1. A bank’s balance sheet
a. shows that total asts equals total liabilities plus equity capital.
b. lists sources and us of bank funds.
c. indicates whether or not the bank is profitable.
d. does all of the above.
e. does only (a) and (b) of the above.
2. Which of the following are reported as liabilities on a bank’s balance sheet?
a. Rerves
b. Small denomination time deposits
c. Loans
d. Deposits with other banks
3. Checkable deposits and money market deposit accounts are
a. payable on demand.
b. liabilities of the banks.
c. asts of the banks.
d. only (a) and (b) of the above.
e. only (a) and (c) of the above.连理岛
4. Large-denomination CDs are _____, so that like a bond they can be resold in a _____ market before they mature.
a. nonnegotiable; condary南海卫校
b. nonnegotiable; primary
c. negotiable; condary
d. negotiable; primary
5. Banks acquire funds from such sources as
a. bank capital.九下古诗
b. cash items in the process of collection.
c. rerves.
d. only (a) and (b) of the above.
6. Bank rerves include
a. deposits at the Fed.
b. vault cash.
寂寂竟何待c. short-term Treasury curities.
d. all of the above.
e. both (a) and (b) of the above.
7. Which of the following are not reported as asts on a bank’s balance sheet?
a. Cash items in the process of collection
b. Deposits with other banks
c. U.S. Treasury curities
d. Checkable deposits
8. Of the following bank asts, the most liquid is
a. consumer loans.
b. state and local government curities.
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c. physical capital.
d. U.S. government curities.
e. commercial loans.
9. In general, banks make profits by lling _____ liabilities and buying _____ asts.焦虑烦躁
a. long-term; shorter-term
b. short-term; longer-term
小兔乖乖教案c. illiquid; liquid
d. risky; risk-free
10. When you deposit $50 in your account at First National Bank and a $100 check you have written on this account is cashed at Chemical Bank, then
a. the liabilities of First National decrea by $50.
b. the rerves at First National increa by $50.
c. the liabilities at Chemical Bank increa by $50.
d. only (a) and (b) of the above occur.
11. When $1 million is deposited at a bank, the required rerve ratio is 20 percent, and the bank choos not to hold any excess rerves but makes loans instead, then, in the bank’s final balance sheet,
a. the asts at the bank increa by $800,000.
b. the liabilities of the bank increa by $1,000,000.
c. the liabilities of the bank increa by $800,000.
d. rerves increa by $160,000.
12. If a bank has $100,000 of deposits, a required rerve ratio of 20 percent, and it holds $30,000 in rerves, and then it has enough rerves to support a deposit outflow of
a. $20,000.
b. $11,000.
c. $5,000.
d. either (a) or (b) of the above.
e. either (b) or (c) of the above.
13. Banks protect themlves from the disruption of deposit outflows by
a. holding excess rerves.
b. lling curities.
c. “calling in” loans.
d. doing all of the above.
e. doing only (a) and (b) of the above.
14. A bank holding insufficient rerves can meet its rerve requirements by
a. borrowing federal funds.
b. borrowing from other banks.
c. lling condary rerves.
d. all of the above.
e. both (a) and (b) of the above.
15. One way for a bank to assure depositors that it is not taking on too much risk, and so obtain their deposits, is for it to
a. diversify its loan portfolio.
b. reduce its equity capital.
c. lengthen the maturity of its asts.
d. shorten the maturity of its liabilities.
16. Compensating balances
a. are a particular form of collateral commonly required on commercial loans.
b. are a required minimum amount of funds that a borrower (i.e., a firm receiving a loan) must
c. keep in a checking account at the bank.
d. allow banks to monitor firms’ check payment practices which can yield information about their borrowers’ financial conditions.
e. all of the above.
17. Credit rationing occurs when a bank
a. refus to make a loan of any amount to a borrower, even when she is willing to pay a higher interest rate.
