a commercial bank is different from an investment bank because:
How can an investment bank experience a "run"? Because investment banks borrow a.short term in the repo market, the refusal of lenders to renew their repos is akin to a commercial bank's depositors withdrawing funds. b. short term from commercial banks, they will experience a "run" whenever commercial banks do. c. from the U.S. Treasury, a "run" can happen to an investment bank if the Treasury allows expenditures to exceed tax revenues. d. long term from a variety of lenders,...
When a commercial bank borrows from the Fed, the reserves of the bank fall. the bank can make more loans. it must be because the bank is not meeting its reserve requirements. the money supply falls.
QUESTION 3 Which of the following is NOT a financial intermediary? Investment bank Savings bank Commercial bank Investment company Technology firm QUESTION 4 Which of the following financial management policy areas deals with establishing the firm's optimal debt ratio? Capital structure Financing Investment Dividend Working capital
The difference between commercial bank and investment bank is the latter specializes in selling new securities. Group of answer choices True False
QUESTION 8 A commercial bank's reserves are A. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. B. assets to both the commercial bank and the Federal Reserve Bank holding them. O Cassets to the commercial bank and liabilities to the Federal Reserve Bank holding them. D. liabilities to both the commercial bank and the Federal Reserve Bank holding them. QUESTION 9 2 Million GOP 112 ? The diagram above is a representation of the...
In 1934, Congress enacted the Glass-Steagall Act, which prohibited commercial banks from using depositors' money to speculate in stocks. More than six decades of financial stability ensued. Why was this law repealed in 1999? 1-Because economists from elite universities, many of them under contract with investment banks, regarded the "Chinese wall" separating commercial and investment banks as outmoded. 2-Because financial services industry leaders demanded more insurance than Glass-Steagall provided. 3-Glass-Steagall was concerned with international commerce, not with financial regulation. 4-Because...
Which of the following variables does the Federal Reserve Bank target when regulating commercial banks Explain bank regulation and bank supervision Question Which of the following variables does the Federal Reserve Bank target when regulating commercial banks? Select the correct answer below: O bank reserves investment choices bank capital all of the above
Tony has been working as a Senior Analyst in an international investment bank for more than 7 years before quitting the job 2 years ago and joined as a Lecturer in Finance in a local university. Because of his strong background, he has been very successful in investing in hi-tech stocks during the last few years but unfortunately, some of his investments have done poorly in the last few months. In order to lock-in most of the profits he made...
What's the difference between Venture Capital Financing and Debt Financing (from a commercial bank)?
The primary source of funds for a commercial bank is: a. loans from other banks b. sale of common stock c. deposits from customers d. none of the above