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Question
The Willis Savings Bank is comparing the prevailing interest rate in the Fed Funds market with that of the negotiable CD market. It is making sure to include the noninterest costs, the deposit insurance costs, and the amount of money that will actually be available for new loans. Which factor that affects a bank's use of nondeposit sources of funds is the bank examining?
A. The relative cost of raising the funds
B. The length of time the funds will be required
C. The risk associated with each source of funds
D. The size of the bank
E. Regulations
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. underwriter's commitment report
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A. two
B. three
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C. Average age of the local population
D. Population Density
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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
C. List of what transactions have passed through the account
D. Access to their safety deposit box
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What is the yield to maturity on this T-Bill?
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If interest rates on both assets and liabilities decrease by 2 percent in the next 90 days, what should happen to this bank's net interest margin?
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B. It should fall by 0.6 percent.
C. It should fall by 4 percent.
D. It should fall by 1 percent.
E. It should not show any fall.
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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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E. All of the options are correct.
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A bank is liability sensitive, if its:
A. deposits and non-deposit borrowings are not affected by changes in interest rates.
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C. interest-sensitive liabilities exceed its interest-sensitive assets.
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The _______________ is determined by the demand and supply for loanable funds in the market.
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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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.
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According to the textbook, bank mergers are often motivated by:
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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.