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
…show more content…
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
8. If a company has $181,000 in total liabilities and $225,000 in total assets, what percentage of total assets is being financed with the use of other people’s money? 80.4 (http://www.cliffsnotes.com/study_guide/Ratio-Analysis.topicArticleId-21248,articleId-21213.html)
b. List three facts about savings account options at the bank or credit union you chose. (3 sentences. 1.0 points)
b. List three facts about savings account options at the bank or credit union you chose. (3 sentences. 1.0 points)
Bank of America is the largest US bank founded in 1904, it has expanded through several acquisitions. By the end of 2009, Bank of America was the market leader serving 82% of the US population and over 53 million customers. They are positioned as number one in online and mobile banking. Their mobile banking services were launched in 2007 and have gained 4 million customers in less than three years. Acquisitions made by Bank of America prior to the financial crisis caused a very strong drop in their stock price.
Suppose a bank has $10,000 in deposits and $8,000 in loans. It has loaned out all it can. It has a reserve ratio of C
b. List three facts about savings account options at the bank or credit union you chose. (3 sentences. 1.0 points)- One thing about
b. List three facts about savings account options at the bank or credit union you chose. (3 sentences. 1.0 points)
17. Which of the following is not a procedure for control of cash payments? A. B. C. D. Checks should be properly authorized with approval signatures. The business should provide written
Banks are not the only financial intermediary from which corporations can obtain financing. What are the other intermediaries? How much financing do they supply, relative to banks, in the United Kingdom, Germany, and Japan?
Identify the financial statement(s) where each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet.
The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.
The U.S. Bureau of the Census defines wholesalers as: The activities of those persons or establishments which sell to retailers and other merchants, and or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.
Feedback: Management accounting is the preparation and use of accounting information systems to achieve the organization's objectives by supporting decision makers inside the enterprise. LO 4
On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The plant has an