Which of the following statements are TRUE?A) A bank's assets are its sources of funds.B) A bank's liabilities are its uses of funds.C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.D) A bank's balance sheet indicates whether or not the bank is profitable.

1. Which of the following are reported as assets on a bank's balance sheet? A) borrowings B) reserves C) savings deposits D) bank capital

1. Which of the following are reported as assets on a bank's balance sheet? A) borrowings B) reserves C) savings deposits D) bank capital 2. Which of the following bank assets is the most liquid? A) consumer loans B) reserves C) state and local government securities D) U.S. government securities 3. Banks earn profits by selling with attractive combinations of liquidity, risk, and return, and using the proceeds to buy with a different set of characteristics. A) loans; deposits B) securities; deposits C) liabilities; assets D) assets; liabilities 4. When you deposit $50 in currency at Old National Bank A) its assets increase by less than $50 because of reserve requirements. B) its reserves increase by less than $50 because of reserve requirements. C) its liabilities increase by $50. D) its liabilities decrease by $50. 5. When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000. 6. Which of the following statements are TRUE? A) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds. C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank's balance sheet indicates whether or not the bank is profitable. 7. Which of the following statements is FALSE? A) A bank's assets are its uses of funds. B) A bank issues liabilities to acquire funds. C) The bank's assets provide the bank with income. D) Bank capital is recorded as an asset on the bank balance sheet. 8. Because checking accounts are liquid for the depositor than savings accounts, they earn interest rates. A) less; higher B) less; lower C) more; higher D) more; lower 9. Bank reserves include A) deposits at the Fed and short-term treasury securities. B) vault cash and short-term Treasury securities. C) vault cash and deposits at the Fed. D) deposits at other banks and deposits at the Fed. 10. Asset transformation can be described as A) borrowing long and lending short. B) borrowing short and lending long. C) borrowing and lending only for the short term. D) borrowing and lending for the long term.

QUESTION 1Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.1 points   QUESTION 2AllStarBank has the following balance sheet (in millions):          Assets                                         Liabilities and Equity         Cash                $30            Deposits                                $110         Loans                90            Borrowed funds                       40         Securities         50            Equity                                         20        Total assets    $170            Total liabilities and equity   $170AllStarBank’s largest customer decides to exercise a $15 million loan commitment. How will the new balance sheet appear if AllStar uses the purchased liquidity management liquidity?A.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                  50             Equity                                        20              Total assets     $185             Total liabilities and equity  $185B.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $105         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        25                Total assets     $185           Total liabilities and equity   $185C.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                   50            Equity                                          5       Total assets            $170            Total liabilities and equity    $170D.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        20                Total assets     $185           Total liabilities and equity   $185E.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       40         Securities                   50            Equity                                       20       Total assets            $170            Total liabilities and equity    $170

5. When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000. 6. Which of the following statements are TRUE? A) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds. C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank's balance sheet indicates whether or not the bank is profitable. 7. Which of the following statements is FALSE? A) A bank's assets are its uses of funds. B) A bank issues liabilities to acquire funds. C) The bank's assets provide the bank with income. D) Bank capital is recorded as an asset on the bank balance sheet.

Which of the following balance sheet portfolio items is NOT a source of funds for a bank?I        OverdraftsII        Lease financeIII       Call depositsIV       Share capitalV        Consumer loansVI       CDVII       Term deposits