Chapter 5
The Financial Statements of Banks and Their Principal Competitors
Fill in the Blank Questions
1. Fed funds purchased is an example of _______________________ along with Eurodollar borrowings.
Answer: nondeposit borrowings
2. The short term securities of the bank, including T-Bills(国库券) and commercial paper, are often called __________________________ because they are the second line of defense to meet demands for cash.满足现金需要的第一道防线
Answer: secondary reserves
3. __________________________ is a noncash expense on the bank's income statement which allows the bank to account for future bad loans.
4. __________________________ is the difference between interest income and interest expenses for a financial institution.
Answer: Net interest income
5. A(n)__________________________ is a short term collateralized loan短期担保贷款. The collateral that is used generally consists of T-Bills. 国库券
Answer: repurchase agreement
6. The principal types of__________________________ include fee income, income from fiduciary activities and services charges on deposits.
Answer: noninterest income
True/False Questions
T F 1. On a bank's income statement (Report of Income) deposit costs are financial inputs.
Answer: True
T F 2. Securities income is a financial output listed on a financial institution's Report of Condition.
Answer: False
T F 3. Net loans on a bank's balance sheet are derived by deducting the allowance for loan losses and unearned discounts from gross loans. 银行资产负债表的贷款净额是从贷款总额减去贷款损失准备和未实现的贴现息
Answer: True
T F 4. Most banks report securities gains as a component of their total noninterest i
ncome.
Answer: False
T F 5. Recoveries on loans previously charged off are added to the Provision for Loan Losses (PLL) account on a bank's income statement.
已注销贷款的收回应记入银行利润表的贷款损失预提账户
Answer: False
T F 6. 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 are known as specific reserves.特种准备
Answer: True
T F 7. Off-balance-sheet items 表外项目for a bank are fee generating transactions which are not recorded on their balance sheet.
Answer: True
T F 8. In looking at comparative balance sheets, it can be seen that large banks rely more heavily on nondeposit borrowings while small banks rely more heavily on deposits.
Answer: True
T F 9. Off-balance-sheet items for banks have declined in recent years.
Answer: False
T F 10. Except for banks, Savings & Loans 储蓄贷款协会and Savings Banks hold the most deposits.
Answer: True
Multiple Choice Questions
1.Bank assets fall into each of the following categories except:
A)Loans.
B)Investment securities.
C)Demand deposits.活期存款
D)Noninterest cash and due from banks.现金和同业存款
E)Other assets.
Answer: C
2.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 loans 贷款租赁损失准备从贷款总额中扣除
B)Unearned income is subtracted from gross interest received
C)Investment income is added to gross interest received
D)A and B.
E)A. and C.
Answer: D
3.An example of a contra-asset account is: 一个与资产相反的账户是
A)The loan and lease loss allowance. 贷款损失准备
B)银行贷款业务Unearned income.
C)Buildings and equipment.
D)Revenue bonds.
E)The provision for loan loss.贷款损失预提
Answer: A
4. A financial institution's bad-debt reserve坏账准备, as reported on its balance sheet, is called:
A) Unearned income or discount
B) Allowance for possible loan losses
C) Intangible assets 无形资产
D) Customer liability on acceptances 客户承兑负债
E) None of the above
Answer: B
5. 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 bank's Report of Condition?
A) Investment Securities
B) Taxable and Tax-Exempt Securities 免税债券
C) Trading Account Securities
D) Secondary Reserves
E) None of the above
Answer: C
6. The difference between noninterest income and noninterest expenses on a bank's Report of Income is called:
A) Net Profit Margin
B) Net Interest Income
C) Net Income After Provision for Possible Loan Losses
D) Income or Loss Before Income Taxes
E) Net Noninterest Income
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