CBM mid-term Questions With Complete Solutions
1-year $1,000,000 loan payable quarterly â€" rate sensitive in
0â€"90 days: correct answers B) $250,000
1yr T-bond 5%, 5yr 7.5%, 10yr 10% â€" yield curve: correct
answers A) Upward-sloping
A bank is asset-sensitive if: correct answers B) Interest-
sensitive assets exceed its interest-sensitive liabilities
A bank is liability-sensitive if: correct answers C) Interest-
sensitive liabilities exceed assets
A bank with $350M ISA and $175M ISL has: correct answers
C) Asset-sensitive gap of $175 million
A bank's IS GAP is defined as: correct answers C) Interest-
sensitive assets minus interest-sensitive liabilities
A financial firm that collects deposits from and makes loans to
its members and which is a nonprofit association of individuals
sharing a common bond is called a: correct answers E) Credit
Union
A financial firm that is smaller in size and offers a narrower
range of services to a local area with more personalized services
is called a: correct answers A) Community Bank
A financial firm that specializes in selling savings deposits and
granting home mortgage loans and other forms of credit to
, individuals is called a: correct answers D) Savings and Loan
Association
A larger financial firm that is an industry leader who offers a
wide range of services and which faces fierce competition from
other giant financial service firms around the globe is called a:
correct answers B) Money Center Bank
A newly released study suggests that: correct answers E) All of
the above
According to the textbook, banking started in which area of the
world over 2000 years ago? correct answers C) Greece and
Rome
Advantages of securitizing loans: correct answers E) All of the
options are advantages
An institutional arrangement in which federal and state
authorities both have significant bank regulatory powers is
referred to as: correct answers C) Dual Banking System
Banks are regulated for which of the reasons listed below?
correct answers E) All of the options are correct
Banks that offer their services exclusively through the web are
called: correct answers E) Virtual Banks
Cash held in the bank's vault and any deposits placed with other
depository institutions are included as part of: correct answers
A) Cash and Due from Depository Institutions
1-year $1,000,000 loan payable quarterly â€" rate sensitive in
0â€"90 days: correct answers B) $250,000
1yr T-bond 5%, 5yr 7.5%, 10yr 10% â€" yield curve: correct
answers A) Upward-sloping
A bank is asset-sensitive if: correct answers B) Interest-
sensitive assets exceed its interest-sensitive liabilities
A bank is liability-sensitive if: correct answers C) Interest-
sensitive liabilities exceed assets
A bank with $350M ISA and $175M ISL has: correct answers
C) Asset-sensitive gap of $175 million
A bank's IS GAP is defined as: correct answers C) Interest-
sensitive assets minus interest-sensitive liabilities
A financial firm that collects deposits from and makes loans to
its members and which is a nonprofit association of individuals
sharing a common bond is called a: correct answers E) Credit
Union
A financial firm that is smaller in size and offers a narrower
range of services to a local area with more personalized services
is called a: correct answers A) Community Bank
A financial firm that specializes in selling savings deposits and
granting home mortgage loans and other forms of credit to
, individuals is called a: correct answers D) Savings and Loan
Association
A larger financial firm that is an industry leader who offers a
wide range of services and which faces fierce competition from
other giant financial service firms around the globe is called a:
correct answers B) Money Center Bank
A newly released study suggests that: correct answers E) All of
the above
According to the textbook, banking started in which area of the
world over 2000 years ago? correct answers C) Greece and
Rome
Advantages of securitizing loans: correct answers E) All of the
options are advantages
An institutional arrangement in which federal and state
authorities both have significant bank regulatory powers is
referred to as: correct answers C) Dual Banking System
Banks are regulated for which of the reasons listed below?
correct answers E) All of the options are correct
Banks that offer their services exclusively through the web are
called: correct answers E) Virtual Banks
Cash held in the bank's vault and any deposits placed with other
depository institutions are included as part of: correct answers
A) Cash and Due from Depository Institutions
