Q9. Option 3
Assets- Liabilities = Net
worth
Hence, Assets = Liabilities + Net worth
Q10. Option 1
Usually, the central bank of a nation acts as lender of last resort and in US it is the Federal Reserve Bank
Q11. Option 1
The Fed has supervisory and regulatory authority to promote the safety, soundness of the banking system
Q12. Option 2
Securitization involves the practice of pooling the loans to create tradeable bonds
Which of the following equations correctly relates assets, liabilities, and net worth? Assets + liabilities =net...
Which of the following equations correctly relates assets, liabilities, and net worth? Assets + liabilities =net worth Assets + net worth = liabilities Assets = liabilities + net worth Liabilities =assets +net worth Which of the following agencies acts as lender of last resort for the banking system? The Federal Reserve System The Treasury The Federal Deposit Insurance Corporation Fannie Mae
Which of the following is an agency that has responsibility for supervising and regulating the safety and soundness of banks? The Fed The Federal Deposit Insurance Corporation The Comptroller of the Currency Treasury Dept. All of the above share the responsibility How did subprime mortgages differ from standard mortgages issued during the housing boom of the mid-2000s? They were less risky. They could not be securitized. They had low or no down payments. All of the above
Sigma Bank has the following balance sheet in millions of dollars. assets liabilities current assets current liabilities cash 21 repo agreements 265 petty cash 0.0001 commercial paper 35.9 marketable securities 8 wages payable 8.5 Long term corp bonds 40.5 interest payable 2.9 residential mortgages 31 taxes payable 4.1 commercial mortgages 3.8 federal funds loans 1.1 prepaid insurance 1.5 unearned revenues 1.5 total current assets 106 accrued income 2.0 total current liabilities 321 investments Sovereign bonds 10 long term liabilities Loans...
1.)To which of the following does the Fed, as used in the United States, refer? A.The country’s central bank B.The federal government C.The Treasury Department D.The Federal Deposit Insurance Corporation 2.)If a bank’s assets and its liabilities are equal, the bank is said to be _______. A.maximizing its profit B.insolvent C.fully utilizing its resources D.in balance 3.)The possibility that borrowers will not be able to repay their loans on time or in full is known as ________ risk. A.liquidity B.credit...
1. liquid assets / monthy expenses= ? 2. net worth / total assets =? 3. total debt / annual total income=? 4. housing amd monthly debt paymenrs / monthly income =? 5. housing cost / monthly income =? $122,782 $ 5,860 Karl's net income from the bar (Schedule C) $64,000 June's salary 57,200 Dividend income 777 Checking interest income 130 Savings interest income 400 Certificate of deposit 275 Total inflows OUTFLOWS Planned savings Section 401(k) plan 5% deferral for June...
Question 18 1 pts Table: Bank Balance Sheet Bank Balance Sheet Assets Liabilities & Net Worth Reserves $ 10,000 Deposits $100,000 Loans 100,000 Debt 20,000 Securities 40.000 Equity 30,000 Based on the table, what is the leverage ratio and reserve-deposit ratio at the bank? Would the bank become insolvent (negative capital) with a 10% loss in the value of assets? O 5, 10% and Yes O 3,6.6% and Yes O 5, 10% and No O 3, 10% and No
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows Rent for the month Spending for food Savings account balance Current value of automobile Credit card balance Auto insurance Video equipment Lunches/parking at work Personal computer Clothing purchase $ 1,250 Monthly take-home salary $645 Cash in checking account $ 2,010 Balance of educational loan $. 9,700 Telephone bill paid for month $295 Loan payment $350 Household possessions $ 2,650 Payment...
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows Rent for the month Spending for food Savings account balance Current value of automobile Credit card balance Auto insurance Video equipment Lunches/parking at work Personal computer Clothing purchase $ 1,250 Monthly take-home salary $645 Cash in checking account $ 2,010 Balance of educational loan $. 9,700 Telephone bill paid for month $295 Loan payment $350 Household possessions $ 2,650 Payment...
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Rent for the month Spending for food Savings account balance Current value of automobile Credit card balance Auto insurance Video equipment Lunches/parking at work Personal computer Clothing purchase $ 700 Monthly take-home salary $ 370 Cash in checking account $ 1,900 Balance of educational loan $ 8,900 Telephone bill paid for month $ 240 Loan payment $ 240 Household possessions...
Examine the balance sheet of commercial banks in the following table. Assets $ Billion % Total Liabilities and Net Worth $ Billion % Total Real assets Liabilities Equipment and premises $ 146.2 0.8 % Deposits $ 10,280.3 56.1 % Other real estate 68.9 0.4 Debt and other borrowed funds 1,286.0 7.0 Total real assets $ 215.1 1.2 % Federal funds and repurchase agreements 1,996.0 10.9 Other 1,598.0 8.7 Total liabilities $ 15,160.3 82.7 % Financial assets Cash $ 896.3 4.9...