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Question
According to the textbook, large banks possess some potential advantages over small and medium-size banks. Which of the following is not such an advantage?
A. Greater diversification, geographically and by product line
B. Availability of financial capital at lower cost
C. Greater professional expertise to allocate capital to the most promising products and services
D. Better positioned to take advantage of the opportunities afforded by interstate banking
E. All the options are advantages typically possessed by large banks
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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C. more employees than other banks.
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Which of the following would not be a telephone service that customers can get from a bank call center?
A. The current balance in their account
B. A fax copy of a loan application to the bank
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A(n) _________________________ is an agreement between a buyer and a seller today which calls for the delivery of a particular security in exchange for cash at some future date for a set price.
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What is the yield to maturity on this T-Bill?
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B. It should fall by 0.6 percent.
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
C. Demand deposits that do not pay interest
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A. deposits and non-deposit borrowings are not affected by changes in interest rates.
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The _______________ is determined by the demand and supply for loanable funds in the market.
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A. Earnings volatility
B. Reduction of the exchange ratio
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E. None of the options is correct
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
A. tax inefficiencies due to a merger.
B. lenders cutting off credit lines due to the merger.
C. accounting irregularities when reporting earnings of the combined entity.
D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
E. All of the options are correct.
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According to the textbook, bank mergers are often motivated by:
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C. expected tax benefits.
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The merger of Bank of America and Security Pacific in 1992 resulted in an expansion of branch offices for both banks.