4. Customer deposits are classified on a DI's (depository banks) balance sheet as
a. assets, because the DI uses deposit funds to earn profits.
b. liabilities, because the DI uses deposits as a source of funds.
c. assets, because customers view deposits as assets.
d. liabilities, because the DI must meet reserve requirements on customer deposits.
e. liabilities, because DIs are required to serve depositors.
a. Nice buildings
b. Customer service
c. non-profit status
d. Convenience
e. Illegal
14. Which of the following statements is FALSE?
a. A financial intermediary specializes in the production of information.
b. A financial intermediary reduces its risk exposure by pooling its assets.
c. A financial intermediary benefits society by providing a mechanism for payments.
d. A financial intermediary may act as a broker to bring together funds deficit and funds surplus units.
e. A financial intermediary acts as a lender of last resort.
19. Which of the following refers to the term "maturity intermediation"?
a. Creation of a secondary market mature enough to withstand volatility.
b. Overcoming constraints to buying assets imposed by large minimum denomination size.
c. Mismatching the maturities of assets and liabilities.
d. Reducing information costs or imperfections between households and corporations.
e. The transfer of wealth from one generation to the next.
20. When a DI makes a shift from an “originate-to-hold” banking model for loans to an “originate-to-sell” model, the change is likely to result in
a. increased operating costs.
b. increased interest rate risk.
c. increased liquidity risk.
d. decreased monitoring costs.
e. decreased fee income
You have asked multiple unrelated questions in the same post. I have addressed the first one. Please post the balance questions separately one by one.
Money center banks rely more heavily on wholesale and borrowed funds as sources of liability funding than do community banks.
True
Commercial paper is an alternative (competitive product) for large
established companies that otherwise would need a business loan
from a commercial bank.
True
There is only one regulatory agency for commercial banks in the
U.S..
False
There are many agencies tasked with regulating and overseeing financial institutions and financial markets, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Securities and Exchange Commission (SEC)
4. Customer deposits are classified on a DI's (depository banks) balance sheet as
The correct answer is the option b. liabilities, because the DI uses deposits as a source of funds.
Multiple Choice: Choose the “best” answer. Please Answer all Money center banks rely more heavily on...
Which of the following is not a key feature of banking in the EU? European banks are allowed to engage in securities markets. European banks are generally significant shareholders in European companies. European banks rely much more on equity than deposits. Regulation covers bank exposures to sovereigns. None of the answers. Which type of financial intermediary is more highly exposed to liquidity risk? Property-casualty insurance companies. Life insurance companies. Mutual funds. Depository institutions. Pension funds.
Please tell me how to do this problem and give me the correct answer. Thanks Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors Identify the financial instruments based on the following descriptions Description Issued by nonfederal government entities, these financial...
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