Question

Question 1

0 / 1 point

A mortgage given by a bank is ___________ to the bank and ___________ to the borrower.

Question options:

	an asset; a liability
	an asset; an asset
	a liability; an asset

Question 3

0 / 1 point

The cost of borrowing overnight from other banks is:

Question options:

	the yield to maturity.
	the federal funds rate.
	the bank rate.

Question 4

0 / 1 point

A bank has borrowed $250 and has received $500 worth of deposits. The bank has given out loans for $650 and has reserves of 150, and the bank holds no securities or any other assets. The bank capital is:

Question options:

	$50
	$100
	$500

Question 5

0 / 1 point

Look at the Powerpoint called "The bank balance sheet." The largest changes in the composition of US commercial banks' balance sheet between 2008 and 2017 is that, as a share of total assets:

Question options:

	reserves have decreased, securities have increased
	loans have increased, reserves have fallen
	reserves have increased, securities have decreased

Answer 1