Chapter 14
Liquidity Planning and Managing Cash Asts
1.Which of the following is not considered a cash ast?
a.Marketable curities
b.Cash items in process of collection
c.Demand deposits at private financial institutions
d.Demand deposits at the Federal Rerve
e.Vault cash
Answer: a
2.Which of the following is not a reason that banks hold cash asts?
a.To meet customer's needs for currency.
b.To meet capital requirements.
c.To meet required rerves.
d.To compensate for correspondent bank rvices.
e.To assist in the check clearing process.
Answer: b
3.Which of the following is not considered a viable long-term source of bank liquidity?
a.Federal funds sold
b.Short-term Treasury curities
c.Cash
d.High quality short-term municipal curities
e.Rever repurcha agreements
Answer: c
4.In which of the following ways can a bank acquire liquidity?
a.Selling Fed funds
b.Investing in repurcha agreements
c.Increasing the number of loans outstanding
d.Selling Treasury curities
e.Buying back outstanding bank stock
Answer: d
5.Which of the following is not an advantage of larger cash balances for a bank?
a.Larger cash balances reduce the need to borrow at the discount window.
b.Larger cash balances reduce the risk of bank runs.
c.Larger cash balances reduce the risk of paying penalties to the Federal Re rve.
d.Larger cash balances increa rerve balances.
e.Larger cash balances reduce a bank's interest expen.
Answer: e
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6.Which of the following is not considered a monetary policy tool of the Federal Rerve?
a.Changing float requirements
b.Open market operations
c.Changing the discount rate
d.Changing rerve requirements
e.All of the above are considered to be monetary policy tools
Answer: a
7.The Federal Rerve has reduced the u of rerve requirements as a monetary policy
tool becau:
a.the Fed has focud on controlling short-term interest rates, rather than the size of M1.
b.of the incread u of sweep accounts.
d.All of the abov
e.
e. a. and c. only.
Answer: d
8.Which of the following does not directly influence the amount of required rerves a
bank must hold?
a.The required rerve ratio.
b.The dollar amount of cash items in process of collection.
c.The dollar amount of demand deposits outstanding.
d.The dollar amount of money market deposit accounts outstanding.
e.The dollar amount of NOW accounts outstanding.
Answer: d
9.In determining rerves, the banks and the Federal Rerve currently u:
a. a leading rerve accounting system.
b. a contemporaneous rerve accounting system.
c. a lagging rerve accounting system.
d.an actual rerve accounting system.
e. a holding rerve accounting system.
Answer: c
书法比赛10.The two-week period during which a bank must hold sufficient legal rerves is called the:
a.deposit computation period.
b.deposit maintenance period.
c.vault cash computation perio
d.
d.ba computation period.
e.maintenance period.
Answer: e
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11.A bank is currently exactly meeting its rerve requirements of 10%. If the bank has a
deposit inflow of $10,000,000, what is the impact on its required rerve position?
a.It now has excess rerves in the amount of $9,000,000.
b.It now has excess rerves in the amount of $10,000,000.
c.It is now deficient $1,000,000 in required rerves.
d.It is now deficient $9,000,000 in required rerves.
e.There would be no impact on the bank's required rerves.
2k显示器分辨率Answer: a
12.Which of the following is a discretionary factor that will increa a bank's daily rerves
held at the Federal Rerve?
a.The prior day's immediate cash letter
b.Federal funds purchad
c.Deposits from the U.S. Treasury
d.Currency received from the Federal Rerve
e.Deficits at the local clearinghou
Answer: b
13.Which of the following is a discretionary factor that will decrea a bank's daily rerves
held at the Federal Rerve?
a.Remittances charged
b.Federal funds purchad
c.The previous day’s immediate cash letter
d.Currency received from the Federal Rerve
e.Deficits at the local clearinghou
Answer: d
14.Which of the following is a non-discretionary factor that will increa a bank's daily
rerves held at the Federal Rerve?
a.Federal funds sold.
b.Receiving a discount window loan
c.Remittances charged
d.Security sales
e.Deposits from the U.S. Treasury
Answer: e
15.Which of the following is a non-discretionary factor that will decrea a bank's daily
rerves held at the Federal Rerve?
a.Deferred availability items
b.Receiving a discount window loan
c.Remittances charged
d.Excess balances at the local clearing hou
e.Federal funds sold
Answer: c
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16.The check-clearing rvices of correspondent banks are often ud becau:
a.the respondent bank is required to purcha a minimum amount of rvices.
b.it reduces required rerves.
c.the correspondent bank may be marketing their own rvices in a local community.
d.it often reduces float.
e.it decreas interest income.
Answer: d
17.A respondent bank expects to purcha $500 worth of correspondent bank rvices during
the next month. If the earnings credit rate is 5%, rerve requirements are 10%, and float is expected to be $5,000, what is the approximate required ledger balance the respondent bank must keep to exactly offt the rvice charges?
a.$100,000
b.$116,000
c.$121,000
d.$135,000
e.$140,000
Answer: e
Investment Income = (Earnings Credit Rate)(30/365)(1-RR)(Ledger Balance – Float)
$500 = .05*(30/365)*(1-.10)(Ledger Balance - $5,000)
$500 = .00369863*(Ledger Balance - $5,000)
$500/.00369863 = Ledger Balance - $5,000
$135,185 = Ledger Balance - $5,000
属水的字
Ledger Balance = $140,185
18.The shiftability theory suggests that:
a.banks can obtain liquidity by lling Treasury curities prior to maturity.
b.banks should only make short-term lf-liquidating loans.
c.loan repayments should match the borrower's cash flows to repay the loan.
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危机公关处理方案d.banks can obtain liquidity by purchasing Fed funds.
e.there is a tradeoff between liquidity and solvency.
Answer: a
19.The liability management theory suggests that:
a.banks can obtain liquidity by lling Treasury curities prior to maturity.
b.banks can obtain liquidity by purchasing Fed funds.
c.loan repayments should match the borrower's cash flows to repay the loan.
d.there is a tradeoff between liquidity and solvency.
e.banks should only make short-term lf-liquidating loans.
Answer: b
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20.Which of the following indicates the potential demand for new loans?
a.Low business growth and activity
b. A relatively large percentage of demand deposits
c.Large, unud commercial credit lines outstanding
d.Large deposits held by a single customer
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e.The level of uninsured deposits
Answer: c
21.Which of the following indicates the potential for deposits leaving a bank?
a.High business activity and growth
b.Deposits that are inelastic to changes in interest rates
c.An aggressive bank loan officer
d.Large deposits held by a single customer
e.Small unud commercial credit lines outstanding
Answer: d
22.Which of the following is not considered a highly liquid ast?
a.Federal funds sold
b.90-day Treasury bills
c.AAA-rated commercial paper
d. A Federal Home Loan Bank Board bond with 6 months until maturity
e.Repurcha agreement
Answer: e
Note: A repurcha agreement is a liability.
23.Which of the following is not a measure of liability liquidity?
a.Total loans to total asts
b.Total deposits to total asts
c.Total equity to total asts
d.Loan loss to net loans
e.Core deposits to total asts
Answer: a
24.Everything el the same, a high loan-to-deposit ratio indicates:
a.the bank will be very profitable.
b.the bank is less liquid than a bank with a lower loan-to-deposit ratio.
c.that capital requirements are being met.
d.that the bank has lower than average credit risk.
酒的广告语e.that the bank's customers are interest inelastic.
Answer: b
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