Question 1\t\u00a0\t \ufffd\u00a0\u00a0\tBanks G and H are the same size and have similar operations. Bank G holds the minimum level of capital and Bank H holds a higher level of capital. Bank G’s return on equity is probably ____ volatile than that of Bank H. Bank G’s beta is probably ____ than that of Bank H.\t\u00a0\tQuestion 2\t\u00a0\t \ufffd\u00a0\u00a0\tBanks A and B have the same net income. Bank A has a higher capital ratio and more assets than B. Bank A’s return on assets is ____ than Bank B’s. Bank A’s return on equity is ____ than Bank B’s.\t\u00a0\tQuestion 3\t\u00a0\t \ufffd\u00a0\u00a0\tThe risk premium on a commercial bank is ____ related to economic growth and ____ related to management skills.\t\u00a0\tQuestion 4\t\u00a0\t \ufffd\u00a0\u00a0\tNet income measured as a percentage of assets is\t\u00a0\tQuestion 5\t\u00a0\t \ufffd\u00a0\u00a0\tInterest paid on deposits and borrowed funds is called\t\u00a0\tQuestion 6\t\u00a0\t \ufffd\u00a0\u00a0\t____ results from a bank’s sale of securities.\t\u00a0\tQuestion 7\t\u00a0\t \ufffd\u00a0\u00a0\tIf a bank has short-term deposits and provides long-term fixed rate loans, and interest rates decline over time, its net interest margin should be:\t\u00a0\tQuestion 8\t\u00a0\t \ufffd\u00a0\u00a0\tInterest income generated from all assets is called\t\u00a0\tQuestion 9\t\u00a0\t \ufffd\u00a0\u00a0\tChanges in ____ are a factor affecting the value of a commercial bank over which the bank has some control.\t\u00a0\tQuestion 10\t\u00a0\t \ufffd\u00a0\u00a0\tDuring the credit crisis, the level of ____ was much higher than in other periods.\t\u00a0\tQuestion 11\t\u00a0\t \ufffd\u00a0\u00a0\tIf a bank is too ____ in attempting to avoid loan losses, its net interest margin will be ____.\t\u00a0\tQuestion 12\t\u00a0\t \ufffd\u00a0\u00a0\tWhen only equity counts as capital, the leverage measure is\t\u00a0\tQuestion 13\t\u00a0\t \ufffd\u00a0\u00a0\tThe sum of net interest income, non-interest income, and securities gains, minus provision for loan losses and non-interest expenses equals\t\u00a0\tQuestion 14\t\u00a0\t \ufffd\u00a0\u00a0\tIf a bank increases its provisions for loan losses, its interest income is ____, and its noninterest income is ____.\t\u00a0\tQuestion 15\t\u00a0\t \ufffd\u00a0\u00a0\tWhich of the following banks would likely have the highest return on equity?\t\u00a0\tQuestion 16\t\u00a0\t \ufffd\u00a0\u00a0\tFederal credit unions are regulated and supervised by the\t\u00a0\tQuestion 17\t\u00a0\t \ufffd\u00a0\u00a0\tSavings institutions obtain most of their funds from\t\u00a0\tQuestion 18\t\u00a0\t \ufffd\u00a0\u00a0\t____ are the primary asset of savings institutions.\t\u00a0\tQuestion 19\t\u00a0\t \ufffd\u00a0\u00a0\tTo obtain short-term funds, savings institutions commonly borrow funds in the ____ market.\t\u00a0\tQuestion 20\t\u00a0\t \ufffd\u00a0\u00a0\tSavings institutions can obtain capital by:\t\u00a0\tQuestion 21\t\u00a0\t \ufffd\u00a0\u00a0\tThe primary use of credit union funds is\t\u00a0\tQuestion 22\t\u00a0\t \ufffd\u00a0\u00a0\tThe ____ savings institutions hold the most assets in aggregate.\t\u00a0\tQuestion 23\t\u00a0\t \ufffd\u00a0\u00a0\tThe risk that a credit union will experience an unanticipated wave of withdrawals without an offsetting amount of new deposits is ____ risk.\t\u00a0\tQuestion 24\t\u00a0\t \ufffd\u00a0\u00a0\tCredit unions obtain most of their funds from\t\u00a0\tQuestion 25\t\u00a0\t \ufffd\u00a0\u00a0\tWhich of the following is not an asset of savings institutions?\t\u00a0\tQuestion 26\t\u00a0\t \ufffd\u00a0\u00a0\tToday, credit unions are regulated as to the\t\u00a0\tQuestion 27\t\u00a0\t \ufffd\u00a0\u00a0\t____ are non-profit organizations composed of members with a common bond.\t\u00a0\tQuestion 28\t\u00a0\t \ufffd\u00a0\u00a0\t____ do not represent an asset of credit unions.\t\u00a0\tQuestion 29\t\u00a0\t \ufffd\u00a0\u00a0\tSavings institutions that reduce their amount of ____ will best reduce their exposure to interest rate risk.\t\u00a0\tQuestion 30\t\u00a0\t \ufffd\u00a0\u00a0\t____ risk is probably the least concern for savings institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1 \u00a0 \ufffd\u00a0\u00a0 Banks G and H are the same size and have similar operations. Bank G holds the minimum level of capital and Bank H holds a higher level of capital. Bank G’s return on equity is probably Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216452","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216452"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}