Commercial Banks' Financial Statements and Analysis Questions with Answers

1736 Words May 31st, 2015 7 Pages
Chapter 12 Commercial Banks’ Financial Statements and Analysis
True/False Questions
1.A wholesale bank is one that focuses its business activities on commercial bankingrelationships.Answer: True Page: 351 Level: Easy

2.In 2004 Bank of America, headquartered in Charleston, West Virginia, was thenation 's sixth largest bank.Answer: False Page: 351-352 Level: Medium

3.Banks have higher leverage than most manufacturing firms.Answer: True Page: 352,355 Level: Easy

4.Loans to consumers and to individuals are jointly termed C&I loans on a bank balancesheet.Answer: False Page: 355 Level: Easy

5.Currency in the process of collection is checks that the bank owes to other banks buthas not yet paid.Answer: True Page: 352 Level: Medium

6.C&I
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A)NOWs
B)Retail CDs
C)MMDAs
D)Special savings depositsE)Negotiable CDs
Answer: C Page: 356 Level: Medium

25.Long maturity investments for a bank typically include all but which one of thefollowing?A)U.S. Treasury bondsB)U.S. agency securitiesC)Mortgage backed securitiesD)Common stocksE)Municipal bondsAnswer: D Page: 354 Level: Easy

26.Purchased funds include all but which one of the following?A)Brokered depositsB)Wholesale CDsC)Fed funds purchasedD)Repurchase agreementsE)Demand depositsAnswer: E Page: 358 Level: Easy

27.Core deposits typically include all except which one of the following?A)Demand depositsB)NOW accountsC)MMDAsD)Eurodollar depositsE)Passbook savings accountsAnswer: D Page: 358 Level: Easy

28.A bank has interest income to total assets ratio of 5% and has noninterest income of $30 million and total assets of $750 million. What is the bank 's asset utilization ratio?A)5.0%B)9.0%C)7.5%D)6.3%E)8.2%Answer: B Page: 371 Level: Medium

29.A person who enters a
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