2. For depository institutions, the most pressing demanding for spendable funds generally come from two sources: customers withdrawing money from their accounts. credit requests from customers the institution wishes to keep, either in the form of new loan requests or drawings upon existing credit lines. all of the above none of the above
Q: When preparing bank reconciliation, deposits in transit will: A. Increase the balance per…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: The quantity of deposit and nondeposit funds in a bank depends on all of the following EXCEPT: a.…
A: A bank is a financial institution that accepts deposits from surplus units and lends to deficit…
Q: All of the following are common ratio measures of bank liquidity EXCEPT: a. loans/deposits b.…
A: The liquidity ratio refers to the short-term financial ratio that determines the ability to meet the…
Q: riefly explain about Basic Concepts of sources of Bank Funds. No plagiarism.
A: Introduction : In simple words, banks are the financial institutions which work as a bridge between…
Q: This is the PRIMARY FUNCTION OF COMMERCIAL BANKS TRUST FUNDS SAFE DEPOSIT BOXES EXTEND CREDIT…
A: 1.Trust Fund is an entity that holds property on behalf of someone 2.Safe Deposit Boxes means…
Q: Ina bank reconciliation statement, explain. A. Non-sufficient-funds (NSF) check B. What is a deposit…
A: Bank Reconcilation Statement Bank reconciliation is the process of reconciling of cash balance as…
Q: Which of the Deposits in the bank provides facility for bank overdraft? Select one: O a. Current…
A: Banking system is a system in which bank organizations seeks deposit from public to lend them…
Q: When preparing a bank reconciliation, a not sufficient funds (NSF) check is
A: Not sufficient funds (NSF) check is the check issued by the issuer but which is not honured or…
Q: 71. Which of the following is the usual activity classification of cash advances and loans made by…
A: Operating activities is the function directly retated to company's core business activities. Like…
Q: accounts are not transferrec to Realization Account? O a. Bank overdraft O b. Reserve fund O c.…
A: Option D is the correct Answer i.e All Options are Correct.
Q: If households and businesses lend their surplus cash directly to borrowers, there would be no need…
A: Solution: Financial institution facilitates the flow of funds between the individuals and or the…
Q: Liabilities of saving institutions include: checkable deposits, NOW accounts, and regular savings…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Financial markets have the basic function of: O a. Assuring that governments need deficit money. O…
A: Financial markets is a marketplace for trading. It is a place where financial instruments are…
Q: "Dhan Samudra' is a bank, which needs immediate cash. This has been the situation since the RBI…
A: Commercial paper: Commercial paper is a commonly used type of unsecured, short-term debt instrument…
Q: ing source of finance allows the holders to withdraw more than their balance ? a. Commercial Paper…
A: Financial instruments are instruments that have some monetary value and are created due to the…
Q: From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability.…
A: Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary…
Q: Describe your findings and indicates the maximum amount of bank borrowing that is needed from the…
A: Cash budget is defined as cash inflows as well as outflows estimation of the company over the…
Q: which one of the following statements doesn't describe the electronic fund transfer: Select one: a.…
A: Electronic Fund transfer - It is a method of sending money in which money can be sent from one…
Q: A bank's required reserve ratio is equal to: Checkable Deposits/Required Reserves Net Worth/Assets…
A: In the context of the given question, we are required to explain the required reserve ratio which is…
Q: xplain about, B
A: Introduction : A bank can be understood as the type of financial organization that receives public…
Q: Elaborately explain about, Uses of Bank Funds – The Lending Function: The credit process. No…
A: Uses of Bank Funds: Bank funs the amount of money present with the bank that is deposited by the…
Q: rately explain a
A: Introduction : In simple words, banks refers to a financial institution which provides funds to the…
Q: The entry to establish the Change Fund includes which of the following?
A: The entry to establish the Change Fund includes a debit to change fund and credit to cash.
Q: Explain and answer the following questions below: 1. Explain the financial presentation and…
A: Cash refers to the currency and coins which is most liquid asset of the company which could possess.…
Q: Which statement is not correct? A. The primary function of the financial system is to…
A: financial system is a the system that allows exchange of funds between financial market and lenders,…
Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is NOT an advantage of depositing funds into a bank account (compared to…
A: Depositing funds with the banks is considered the safest investment and due to less risk it fetches…
Q: he amount of loans that a bank can create is limited by elect one: O a. laws enacted by Parliament.…
A: The amount of loans that a bank can creates limited by - (b) the monetary base, bank's desired…
Q: Which of the following is a bank account from which a company transfers funds from a master account…
A: The banks require funds for the settlements of the accounts, cheques clearance, and other payments.…
Q: The term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only…
A: Loanable funds is that financial term that refers to sum total or aggregate of all sums of money…
Q: overdrafts and overdraft fees
A: A bank is a type of financial institution which is licensed for the purpose of receiving deposits…
Q: Interbank borrowing is collateralized borrowing the main source of funds for most banks is subject…
A: Interbank borrowings is the market in which bank lends funds from one another . In this maturities…
Q: Due to the increased need for security for the performance of obligations arising from these…
A: The main function of financial institutions is to transfer capital from savers (having idle funds)…
Q: Choose the function and service of a bank in which Bank Purchases and sells securities, shares and…
A: A bank provides different functions to its customers along with core banking services and some…
Q: Which of the following are ways that commercial banks use the funds they receive? Check all that…
A: Solution- (1)- The funds received by commercial banks are typically wont to lend and thereby earn…
Q: 9. is an example of the first line defense against customer demand on deposit O trading account…
A: Banks are financial institutes that deal in activities like lending, deposits, investments of funds…
Q: Secondary Intermediaries are called as such because they depend heavily on other financial…
A: Answer: TRue
Q: riefly explain about Sources of Bank Funds: Bank Liabilities- Deposits/ Non-Deposits. No plagiari
A: Introduction : In simple words, banks are a kind of financial institution that engages in borrowing…
Q: Which of the following is not normally increased by a cash inflow transaction? a) Advances from…
A: Solution: "Deposits on returnable containers" is not normally increased by a cash inflow…
Step by step
Solved in 2 steps
- Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b. Overnight borrowing by banks to provide customers short term loans c. Borrowing by banks to meet unexpected rise in customers withdrawal d. Overnight borrowing by banks to meet customers depositThe term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.Give typing answer with explanation and conclusion When a bank increases its fed funds sold, its deposit balance in the Fed will _________ ; when a bank's deposit balance in the Fed increases, the bank has increased its fed funds______ Group of answer choices increase; purchased increase; sold decrease; purchased decrease; sold
- Customer loans are classified on a Depository Institution (DI)'s balance sheet as Select one: A. liabilities, because the customer may default on the loan. B. assets, because the DI earns servicing fees on the loan. C. assets, because the DI's major asset is its client base. D. assets, because DIs originate and monitor loan portfolios. E. liabilities, because the DI must transfer funds to the borrower at the initiation of the loan.Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation? Multiple Choice Electronic fund transfers Service charges NSF checks Deposits in transitBank channels funds from individuals with surplus to those desiring funds. Select one:TrueFalse
- Select TWO true statements about money.a. Base money is equal to cash plus commercial bank reserves with the central bankb. Cash is a liability of the central bankc. If a commercial bank makes a loan and credits the borrower's current account, then base money increasesd. Commercial bank reserves with the central bank appear as a liability in their balance sheetsBank overdrafts that are repayable on demand and the bank balance often fluctuates from positive to overdrawn shall be classified as Operating activities Investing activities Financing activities Component of cash and cash equivalentsThe quantity of deposit and nondeposit funds in a bank depends on all of the following EXCEPT:a. the Fed's monetary policy actionsb. the bank's financial strengthc. economic conditionsd. none of the above Choose one correct answer please.
- Financial institutions can secure liquidity through the following sources except: a. Liquidity assets. b. Use of excess cash from daily business operations/reserves. c. Use of cash from daily business operations. d. Inter-bank loans.Incorporate the following data into Bank X's revenue statement. Each item should be labelled and placed in the proper category and order. Commission ,exchange and brokerage received.Income on InvestmentsInterest paid on depositsPayments to and provisions for employeesInterest paid on BBI/ interbank borrowingsInterest/discount received on advances/billsIncome from leasing/hire purchaseInterest paid-othersProfit on exchange transactionsRent, taxes, lightingInsuranceLaw chargesProfit on sale of land, buildings and other assetsMiscellaneous incomeAuditor’s fees and expensesPrinting and stationaryProfit on sale of investmentsDepreciation on bank’s propertyIncome by way of dividends and subsidiariesAdvertisement and PublicityInterest earned – othersDirector’s fees, allowances and expensesMiscellaneous incomeRepairs and maintenanceOther expensesPostage, telegram, telephone and other communication expensesInterest received on balances with RBI and interbank funds.Which of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? a. Bank service charge b. Chargeback for NSF check c. Deposit in transit d. Bank interest