商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap013

1、chapter 13managing nondeposit liabilities fill in the blank questions1.dollar denominated cds issued outside the u.s. are called _. answer: eurodollar cds 2.the cds large foreign banks sell through their u.s. branches are called _. answer: yankee cds 3.when a bank buys funds from other financial ins

2、titutions in order to cover good quality loan demand and to satisfy deposit reserve requirements they are practicing _. answer: liability management 4.when the first priority of a bank is to make loans to all good quality loan customers they are following the _. answer: customer relationship doctrin

3、e 5.originally _ consisted exclusively of deposits held by u.s. banks at the federal reserve banks which were loaned from one bank to another. answer: federal funds 6._ is the short-term notes, with maturities ranging from 3 to 4 days to 9 months, issued by well known companies. answer: commercial p

4、aper 7.a _ is the temporary sale of high-quality, easily-liquidated assets accompanied by the agreement to buy back those assets on a future specific date at a predetermined price. answer: repurchase agreement 8.because the interest rate on cds, commercial paper and other nondeposit borrowings (exce

5、pt borrowings from the federal reserve discount window) are determined by supply and demand conditions in the market they all face _ risk. answer: interest rate 9.the spread between current and expected loans and investments and the current and expected deposit inflows and other sources of funds is

6、known as the _. answer: funds gap 10.a(n) _ is an interest bearing receipt for funds issued by a bank with a minimum denomination of $100,000. answer: negotiable (jumbo) cd 11.because there is a danger that the bank in need of funds will not be able to find someone willing to grant the bank a loan a

7、t a reasonable rate, they face _. answer: credit availability risk 12.the federal reserve will make loans through its _. answer: discount window 13.the securities most often used in a repurchase agreement are _. answer: t-bills 14.virtually all nondeposit borrowing of a bank are _-term rather than _

8、-term debt. answer: short, long 15.repurchase agreements (rps) are very similar to federal funds and are often viewed as _ federal funds transactions. answer: collateralized 16.a repurchase agreement (rp) whereby the collateral is specifically identified is known as a conventional or _ rp. answer: f

9、ixed-collateral 17.a _ repurchase agreement (rp) is one in which the underlying collateral is not identified precisely and thus allows some substitution. answer: general collateral finance 18.the type of discount window loan with generally the highest rates of interest is known as _ credit. answer:

10、secondary 19.the type of discount window loan with generally the lowest rate of interest is known as _ credit. answer: seasonal20. federal reserve balances of banks can be transferred from one institution to another in seconds through the feds wire transfer network called the .answer: fedwire21. one

11、 of the three types of loans in the fed funds market, are unwritten agreements, negotiated via wire or telephone, with the borrowed funds returned the next day.answer: overnight loans22. one of the three types of loans in the fed funds market, are longer-term fed funds contracts lasting several days

12、, weeks or months, often accompanied by a written contract.answer: term loans23. one of the three types of loans in the fed funds market, are automatically renewed each day unless either the borrower or lender decides to end this agreement.answer: continuing contracts24. when financial institution b

13、orrows in the rp market, this loan is listed as .answer: securities sold under agreements to repurchase 25. are nondeposit borrowings that are fully collateralized by home mortgages and have maturities ranging from overnight to 20 years.answer: advances from the federal home loan bankstrue/false que

14、stions26.the traditional and principal source of bank funds is deposits.answer: true 27.asset management (i.e., conversion of assets to cash) is regarded as an interest-sensitive approach to raising funds. answer: false 28.deposits have been growing faster than nondeposit sources of funds in recent

15、years among u.s. banks. answer: false 29.federal funds today consist exclusively of deposits held at the federal reserve banks. answer: false 30.there are no reserve requirements on federal funds borrowings in the u.s. answer: true 31.accommodating banks buy and sell federal funds simultaneously. an

16、swer: true 32.loans of federal funds under a continuing contract are automatically renewed each day unless either the borrower or the lender decides to end the agreement. answer: true 33.the loan from a federal reserve bank which normally lasts only a few days and is designed to provide immediate ai

17、d in meeting a bank's legal reserve requirement is known as extended credit.answer: false 34.yankee cds are issued by large savings and loan associations and other nonbank savings institutions. answer: false 35.the volume of variable-rate cds exceeds the volume of fixed-rate cds among u.s. banks

18、. answer: false 36.liability management is considered to be an interest-sensitive approach to raising bank funds. answer: true 37.funds raised by the use of liability management techniques are considered to be flexible.answer: true 38.liability management banking calls for using price (the interest

19、rate offered) as the control lever to regulate incoming funds. answer: true 39.the most common type of federal funds loans are term loans. answer: false 40.longer-term federal funds contracts lasting several days, weeks, or months, often accompanied by a written contract, are called continuing contr

20、acts. answer: false 41.according to the fdic improvement act undercapitalized u.s. banks cannot be granted discount window loans for more than 60 days in each 120-day period. answer: true 42.the largest foreign banks active in the united states sell cds through their u.s. branches called yankee cds.

21、answer: true 43.under current federal law commercial banks in the united states can issue commercial paper as direct obligations of the banks. answer: false 44.nondeposit funds do have the advantage of quick availability compared to most types of deposits, but are not as stable a funding source for

22、banks as are time and savings deposits. answer: true 45.longer-term federal funds contracts which are automatically renewed each day unless either the borrower or the lender decides to end the agreement are called term loans, answer: false 46.the main use of federal funds today is still the traditio

23、nal one. federal funds provide a mechanism that allows banks short of legal reserves to tap into immediately available funds from other institutions possessing temporarily idle funds. answer: true 47.one of the factors to consider when a bank chooses among nondeposit funding sources is the relative

24、cost. in general, the cheapest source of short-term funds is the fed funds market. answer: true 48.there are no restrictions on getting a federal reserve loan and because it is the cheapest source of short-term funds most banks will use this source of funds exclusively. answer: false 49.cds must be

25、issued with maturities of at least 7 days. answer: true 50.loans from the fed funds market must be backed by collateral. answer: false 51.in recent years financial institutions have gotten better at managing interest rate risk. answer: true 52.large banks depend more on nondeposit borrowings than sm

26、all banks. answer: true 53.although there is an active federal funds spot market, there is currently no associated futures market for federal funds. answer: false 54.repurchase agreement (rps) transactions are perceived to be less risky than equivalent federal funds transactions. answer: true 55.int

27、erest rates in the repurchase agreement (rp) market are quoted on a 360-day basis. answer: true 56.seasonal credit discount window loans generally have the highest interest rates. answer: false 57. primary credit is defined as loans available for short terms and normally considered beneficial for th

28、e borrower because it carries an interest rate slightly below the target fed funds rate. answer: false 58. when the general credit conditions are tight, there is a possibility that not every borrower will be accommodated by a lender. this chance of credit rationing is referred to as credit availabil

29、ity risk.answer: true 59. the size of a financial institution has an effect on the type of nondeposit funding source that it will consider. for example, larger depository institutions have the credit standing to sell the largest negotiable cds, while the fed funds market is suitable for smaller inst

30、itutions.answer: true60. only federal regulators can limit the terms (amount, frequency, and use) of borrower funds by the u.s. depository institutions.answer: falsemultiple choice questions61. the doctrine that the first priority of a bank is to make loans to all those customers from whom the bank

31、expects to receive positive net earnings is called the: a)funds management doctrine b)customer relationship doctrine c)loan priority doctrine d)revenue flows doctrine e)none of the above. answer: b 62. the doctrine that banks should be able to buy the reserves they need to cover good-quality loan re

32、quests is known as: a)funds management b)asset management c)liability management d)asset-liability coordinated management e)none of the above. answer: c 63. with liability management banking the control lever to regulate incoming bank funds is: a)management discretion b)the volume of loan demand the

33、 bank faces. c)deposit growth d)price e)none of the above. answer: d 64. the most popular domestic source of borrowed reserves for u.s. banks is: a)federal funds market b)money market negotiable cds c)eurodollar market d)borrowings from the federal reserve banks e)commercial paper market answer: a 6

34、5. the phrase "short-term borrowings of immediately available money" refers to: a)negotiable cds b)eurodollar deposits c)commercial paper issues d)borrowings of legal reserves at the federal reserve banks e)none of the above. answer: e 66. large time deposits are generally referred to as:a

35、) mini cds.b) jumbo cds.c) large cds.d) giant cds.e) super cds.answer: b67. the source of short-term funds for commercial banks that was developed to tap temporary surplus funds held by large corporate and wealthy individual customers is: a)federal funds. b)commercial paper. c)eurodollar deposits. d

36、)negotiable cds. e)none of the above. answer: d 68. first national bank has new loan requests of $225 million, needs to purchase $100 million in u.s. treasury securities to meet pledging requirements, and anticipates draws against credit lines of $135 million. deposits received today total $215 mill

37、ion and the bank expects to bring in an additional $100 million next week. what is first national's estimated funds gap for the coming week? a)$225 million. b)$145 million. c)$135 million. d)$100 million. e)none of the above. answer: b 69. first national bank has new loan requests of $175 millio

38、n, needs to purchase $50 million in u.s. treasury securities to meet pledging requirements, and anticipates draws against credit lines of $45 million. deposits received today total $140 million and the bank expects to bring in an additional $230 million next week. what is first national's estima

39、ted funds gap for the coming week? a)$225 million. b)$145 million. c)$135 million. d)$100 million. e)none of the above. answer: d 70. factors that will affect a bank's decision as to which nondeposit sources of funds it will use to cover its projected funds gap include which of the following? a)

40、the relative cost of raising the funds. b)the length of time the funds will be required. c)the risk associated with each source of funds. d)the size of the bank. e)all of the above. answer: e 71. first national bank is planning to raise $30 million through an offering of negotiable cds. the current

41、rate for similar cds is 5.5%. noninterest cost rate for cds is 0.25 percent. first national pays a deposit insurance premium of 0.0023 per dollar of insured deposits. due to other immediate cash needs, only $25 million will be fully invested. what is the effective cost rate of borrowing in the cd ma

42、rket? a)6.9% b)7.2% c)6.0% d)5.5% e)none of the above. answer: b 72. cds that are sold by the largest foreign banks through their u.s. branches are called: a)thrift cds. b)domestic cds. c)eurocds. d)yankee cds. e)none of the above. answer: d 73. accommodating banks perform what role? a)they act as i

43、ntermediaries in the eurodollar market. b)they issue negotiable cds for themselves and for other banks. c)they sell commercial paper to raise funds for themselves and other firms belonging to their bank holding company. d)they buy and sell federal funds simultaneously in order to make a market for r

44、eserves of customer banks. e)none of the above. answer: d 74. a federal funds loan that is automatically renewed each day unless either the borrower or the lender decides to end the loan agreement is known as a: a)overnight loan. b)continuing contract. c)term loan. d)rollover loan agreement e)none o

45、f the above answer: b 75. longer-term federal funds contracts lasting several days, weeks, or months, often accompanied by a written contract, are known as: a)term loans. b)continuing contracts c)rollover loans. d)federal funds mutuality agreements e)none of the above answer: a 76. the federal law t

46、hat restricts federal reserve lending to undercapitalized banks and to banks that are "viable entities" is the: a)riegle community development and regulatory improvement act b)fdic improvement act. c)financial institutions reform, recovery, and enforcement act. d)depository institutions de

47、regulation and monetary control act. e)none of the above. answer: b 77. the bank funding source that is really a "hybrid" account is the: a)federal funds loan. b)repurchase agreement. c)negotiable cd. d)eurodollar deposit. e)none of the above. answer: c 78. a bank plans on borrowing $150 m

48、illion through an rp transaction collateralized by t-bills. the bank plans on borrowing the money for 5 days and the current rp rate is 5.25 percent. what is this bank's total interest cost in dollars? a)$7,875,000 b)$107,877 c)$21,875 d)$109,375 e)none of the above answer: d 79. suppose a bank

49、promises an annual return of 6.5 percent on a three month (90 day) $150,000 cd) what will be the total amount due the customer at the end of the three month period? a)$152,437.50 b)$2,437.50 c)$150,000 d)$152,404.11 e)none of the above answer: a 80. the short-term notes, with maturities ranging from

50、 3 or 4 days to 9 months, issued by well known companies are known as: a)negotiable cds b)commercial paper c)federal funds d)repurchase agreements e)none of the above answer: b 81. the trc bank is planning on raising $500 million in a new offering of commercial paper through its holding company. the

51、 plan on using $475 million of it to fund new loans. the current interest rate for similar commercial paper is 6.45 percent and they expect .25 percent in issuing costs. what is the effective rate of interest on this issue of commercial paper? a)6.65% b)6.45% c)7.05% d)6.79% e)none of the above answ

52、er: c 82. an agreement where one party agrees to sell t-bills to another party and at the same time agrees to buy them back at a set price is known as: a)a repurchase agreement b)commercial paper c)federal funds d)negotiable cds e)none of the above answer: a 83. which of the following is not an adva

53、ntage of using a repurchase agreement? a)the bank gains excess reserves which can used to make new deposits b)the bank makes use of high-quality but low yielding assets without losing them permanently c)if the agreement is made with a bank who keeps a checkable deposit with the bank it can reduce both the bank's deposits and reserve requirements d)the interest rate the bank has to