Question

QUESTION 25 Read the questions carefully and match the most appropriately Column A to Column Fed funds purchased is an example of A noninterest income along with Eurodollar borrowings Net interest income - The short-term securities of the bank, including T-Bills and commercial C ondeposit borrowings paper, are often called because they are D NOW accounts the second line of defense to meet demands for cash secondary reserves a noncash expense on the bank's income Report of Income income statement statement which allows the bank to account for future bad loans Report of Condition (balance sheet) is the difference between total interest H i ndow dress income and total interest expenses for a financial institution money market deposit account Am is a deposit account which pays a Provision for loan losses interest rate competitive with money market mutual funds and which generally has limited check iting ability * The principal types of include fee income income from fiduciary activities, and service charges on deposit The shows the amount of revenues received and expenses incurred over a specific time period The lists the abilities and equity capital held by the bank on sien date The activity of manipulating the financial statements to artificially enhance the bank financial strength is known as can be held by individuals and nonprofit institutions bear interest and permit drafts to be written against the account to pay third parties

Answer 1

As per HomeworkLib policy we can aswer first four parts.

(11) fed funds purchased is an example of (C) Non deposit borrowing fed funds are used by banks to meet the reserve requirement at the end of each day, and to control the intrest rates of the nation. (2) The short term securities of the bank are often called (E) Secondary geserves Secondary reserves include Treasury Bills short telum government securities and bank acceptances. (3) Non Cash Expense on the banks miome Statements. (J) Provision for loan losses. This provision is to cover bad looms, and. customer defaults W Difference between total intrest income and total intrest expenses for a financial institution. (B) Met intrest Income It is the difference between intrest received from assets and intrest paid on liabilities.