Question

1.         ____ are the primary assets of those savings institutions whose Total Assets are under $50 Billion.

A.        Mortgages
B.        Cash balances
C.        Investment securities
D.        Business loans
E.         Customer deposits

2.         The predominant liabilities for savings institutions with less than $50 Billion in Total Assets are:

A.        commercial deposits
B.        wholesale money market notes and reserves at the Fed.
C.        transaction accounts, MMDAs and other savings deposits, and time deposits.
D.        money market mutual funds.
E.         FHLB borrowings.

3.         Unlike other savings institutions, the predominant assets for the two savings institutions with the largest Total Assets are:

A.        Cash
B.        Securities
C.        Loans & Leases
D.        Trading Account Assets
E.         Time Deposits

Answer 1

1. The primary assets of those savings institutions whose Total Assets are under $50 Billion.

Ans- Option A. Mortgages

As they provide large amount of Mortgages like Home loan , Car loan etc to retail customers.

2. The predominant liabilities for savings institutions with less than $50 Billion in Total Assets are:

Ans- Option C. Transaction accounts, MMDAs and other savings deposits, and time deposits.

Saving Institutions take large amount of savings and time deposits from retail customer which is there predominant liability.

3.  the predominant assets for the two savings institutions with the largest Total Assets are:

Ans- Option C. LOans & Leases

Cash, Securities & Time Deposits are not asset rather than Liability of saving institution. Hence, Option D