1、 Subordinated notes and debentures6. A（n） is where the financial institution agrees to guarantee repayment of a customers loan received from a third party. standby credit agreement7. A（n） is a short term collateralized loan. The collateral that is used generally consists of T-Bills. repurchase agree
2、ment8. A（n） is a deposit account which pays an interest rate competitive with money market mutual funds and which generally has limited check writing ability. money market deposit accountRose/Hudgins, Bank Management and Financial Services, 8/e779. is the sum of all outstanding IOUs owed to the bank
3、 in the form of consumer, real estate, commercial and agriculture loans as well as other types of credit extensions. gross loans10. A financial institution often records the value of its assets and liabilities at which is the original or historical cost of the asset. book value11. The principal type
4、s of include fee income, income from fiduciary activities and services charges on deposits. noninterest income12. The shows the amount of revenues received and expenses incurred over a specific time period. Report of Income （income statement）13. The lists the assets, liabilities and equity capital h
5、eld by the bank on a given date. Report of Condition （balance sheet）14. is labeled Accounting for Derivative Instruments and Hedging Activities. Answer: FASB 13315. labeled “Accounting for Derivative Instruments and Hedging Activities” and its recent amendments, FASB 138, are designed to make deriva
6、tives more publicly visible on corporate financial statements.16. Under banks must account for the expected loss of interest income on nonperforming loans when calculating their loan-loss provision. FASB 11417. Temporarily buying and selling securities by a securities firm in a thinly traded market
7、so as to influence the price is known as . painting the tape18. The activity of manipulating the financial statements to artificially enhance the banks financial strength is known as . window dressing or creative accounting19. is direct and indirect investment in real estate. These are properties ob
8、tained for compensations for nonperforming loans. Other Real Estate Owned （OREO）20. consists of interest income received on loans from customers that has not yet been earned by the bank under accrual accounting methods. Unearned discount income21. can be held by individuals and nonprofit institution
9、s, bear interest and permit drafts from being written against the account to pay third parties. Now accounts22. In the worldwide banking system, represent transferable time deposits in a variety of currencies and are often the principal source of short term borrows by banks. Answer: Eurocurrency Bor
10、rowings23. One part of arises from fees charged for ATM and POS transactions. Answer: Other Noninterest Income24. Fees that arise from a financial firms trust activities, fees for managing a corporations interest and dividend payments and fees for managing corporate or individual retirement plans ar
11、e all included in the category of fees arising from . fiduciary activities25. Checking account maintenance fees and overdraft fees are included in the noninterest income account under . service charges on deposit accountsTrue/False QuestionsTF 26. On a banks income statement （Report of Income） depos
12、it costs are financial inputs. TrueTF 27. Loans and leases are financial outputs on a financial institutions balance sheet or Report of Condition.TF 28. Nondeposit borrowings are a financial input on a bankTF 29. The cost of nondeposit borrowings is a financial input on a banks income statement or R
13、eport of Income.TF 30. Securities income is a financial output listed on a financial institutions Report of Condition. FalseTF 31. Net loans on a banks balance sheet are derived by deducting the allowance for loan losses and unearned discounts from gross loans.TF 32. When a loan is classified as non
14、performing any accrued interest recorded on the banks books, but not actually received, must be deducted from a banks loan revenues.TF 33. In U.S. banking, securities gains are treated as ordinary income.TF 34. Most banks report securities gains as a component of their total noninterest income.TF 35
15、. A bank displaying trading account securities on its balance sheet is serving as a security dealer and plans to sell those securities before they reach maturity.TF 36. Bad loans normally do not affect a banks current income.TF 37. The expensing of a worthless loan usually must occur in the year tha
16、t loan become worthless.TF 38. Recoveries on loans previously charged off are added to the Provision for Loan Losses （PLL） account on a banks income statement.TF 39. Loan-loss reserves set aside to cover a particular loan or loans expected to be a problem or present the bank with above-average risk
17、are known as specific reserves.TF 40. U.S. banks （especially those with $500 million or more in total assets） are required to file financial statements audited by an independent public accountant with their principal federal regulatory agency.TF 41. Off-balance-sheet items for a bank are fee generat
18、ing transactions which are not recorded on their balance sheet.TF 42. The experience method of accounting for future loan loss reserves allows a bank to deduct from their income statement up to .6 percent of their eligible loans.TF 43. After the Tax Reform Act of 1986, large banks （$500 million in a
19、ssets） were required to use the reserve method of accounting for future loan loss reserves.TF 44. The number one source of revenue for a bank based on dollar volume is loan income.TF 45. In looking at comparative balance sheets, it can be seen that large banks rely more heavily on nondeposit borrowi
20、ngs while small banks rely more heavily on deposits.TF 46. The Pension Fund industry is now larger than the Mutual Fund industry.TF 47. Off-balance-sheet items for banks have declined in recent years.TF 48. Except for banks, Savings & Loans and Savings Banks hold the most deposits.TF 49. Painting th
21、e tape refers to the practice whereby banks understate their nonperforming loans.TF 50. Financial statements issued by banks and nonblank financial service firms are looking increasingly similar today.Multiple Choice Questions51. Bank assets fall into each of the following categories except:A） Loans
22、.B） Investment securities.C） Demand deposits.D） Noninterest cash and due from banks.E） Other assets. C52. Banks generate their largest portion of income from:B） Short-term investment.D） Long-term investments.E） Certificates of deposit. Answer: A53. Loans typically fall into each of the following cat
23、egories except:A） Real estate.B） Consumer.C） Commercial and Industrial （business）.D） Agricultural.E） Municipal. E54. Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?A） The loan and lease loss allowance is subtracted from gross loansB） Unearned inc
24、ome is subtracted from gross interest receivedC） Investment income is added to gross interest receivedD） A and B.E） A. and C. D55. An example of a contra-asset account is:A） The loan and lease loss allowance.B） Unearned income.C） Buildings and equipment.D） Revenue bonds.E） The provision for loan los
25、s. Answer:56. The noncash expense item on a banks Report of Income designed to shelter a banks current earnings from taxes and to help prepare for bad loans is called:A） Short-term debt interestB） Noninterest expenseC） Provision for taxesD） Provision for possible loan lossesE） None of the above.57.
26、A financial institutions bad-debt reserve, as reported on its balance sheet, is called:A） Unearned income or discountB） Allowance for possible loan lossesC） Intangible assetsD） Customer liability on acceptancesE） None of the above Answer: B58. When a bank serves as a security dealer for certain kinds of securities （mainly federal, state, and local government obligations） the value of these securities is usually recorded in what account on a banks Report of Condition?A） Investment SecuritiesB） Taxable and Tax-Exempt Securit
copyright@ 2008-2023 冰点文库 网站版权所有
经营许可证编号:鄂ICP备19020893号-2
升级会员 