A bank's largest liability is its shareholder equity. short-term borrowing. deposits of its customers. long-term debt.
A bank's largest liability is its
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shareholder equity. |
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short-term borrowing. |
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deposits of its customers. |
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long-term debt. |
Homework Answers
Answer
Option 3
deposits of its customers
A bank accepts deposits and lends as loans to its consumers, the deposits are liabilities and loans are assets to a bank. A bank has the largest liability is its deposits; it is higher than the shareholder equity, short and long term borrowings.
Add Answer to:
A bank's largest liability is its
shareholder equity.
short-term borrowing.
deposits of its customers.
long-term debt.
A bank's largest liability is: O its short term borrowing from other financial institutions. its long-term...
A bank's largest liability is: O its short term borrowing from other financial institutions. its long-term debt. O the deposits it received from depositors O the securities that it holds. Liquidity is defined as the ease with which a given asset can be converted to a: store of value O unit of account. medium of exchange. O standard of deferred payment Suppose you have deposited $5000 currency into your savings account at a branch of MBC bank. If the reserve...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850 Cash $6.475 Securities 1.925 1,645 1,030 Loans 5.400 Other 975 $9.150 $9,150 Total Income Statement Interest income on loans $450 Interest income on securities 95 246 Interest expense Noninterest income 78 Noninterest expense Provision for loan loss 112 35 Taxes 115 NI $115 The bank's profit margin is A) 27.27 percent. B) 18.46 percent. OC) 21.31 percent D) 23.08 percent. E) none of the...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850 Cash $6.475 Securities 1.925 1,645 Loans 5.400 _ 1,030 $9,150 Other 975 Total $9,150 Income Statement Interest income on loans $450 Interest income on securities 95 Interest expense Noninterest income 246 78 Noninterest expense Provision for loan loss 112 35 Taxes 115 NI $115 The bank's ROE is A) 15.65 percent. B) 13.21 percent. OC) 19.55 percent. D) 12.67 percent. E) 11.17 percent
Why is borrowing short term often the best solution? When is short term borrowing a bad...
Why is borrowing short term often the best solution? When is short term borrowing a bad idea? What are interest rates doing when short term borrowing is recommended and what are they doing when long term borrow is better?
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph...
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph that shows the relationship between maturity and interest rates for U.S. Government’s borrowings (Treasuries) is called “term structure of the interest rates” or “the yield curve”. Shape of the yield curve is often used by economists to forecast future status of the economy 1. Discuss why long-term rates are usually higher than short-term rates (upward yield curve) 2. Discuss under what economic conditions long-term...
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it...
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
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What are ways to maximize shareholder value through long-term and short-term financial planning and the implementation of various strategies?
A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is...
A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is called as ________.
A bank's largest liability is: O its short term borrowing from other financial institutions. its long-term debt. O the deposits it received from depositors O the securities that it holds. Liquidity is defined as the ease with which a given asset can be converted to a: store of value O unit of account. medium of exchange. O standard of deferred payment Suppose you have deposited $5000 currency into your savings account at a branch of MBC bank. If the reserve...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850 Cash $6.475 Securities 1.925 1,645 1,030 Loans 5.400 Other 975 $9.150 $9,150 Total Income Statement Interest income on loans $450 Interest income on securities 95 246 Interest expense Noninterest income 78 Noninterest expense Provision for loan loss 112 35 Taxes 115 NI $115 The bank's profit margin is A) 27.27 percent. B) 18.46 percent. OC) 21.31 percent D) 23.08 percent. E) none of the...
Bank A (Dollars in Millions) Liability and Equity Deposits Other Borrowing Equity Total Assets S 850 Cash $6.475 Securities 1.925 1,645 Loans 5.400 _ 1,030 $9,150 Other 975 Total $9,150 Income Statement Interest income on loans $450 Interest income on securities 95 Interest expense Noninterest income 246 78 Noninterest expense Provision for loan loss 112 35 Taxes 115 NI $115 The bank's ROE is A) 15.65 percent. B) 13.21 percent. OC) 19.55 percent. D) 12.67 percent. E) 11.17 percent
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
Which of the following will generally be the largest liability on the typical balance sheet of a single-purpose entity (SPE) formed for the purpose of owning and operating a commercial real estate project? Short-term debt Mezzanine debt Partnership debt Long-term debt
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