?2010CengageLearning.AllRightsReserved.ThiseditionisintendedforuseoutsideoftheU.S.only,withcontentthatmaybedifferentfromtheU.S.Edition.Maynotbescanned,copied,duplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter17CommercialBankOperations1.Whichofthefollowingstatementsisincorrect?A)Bankshaveexpandedtheirbusinessacrossservicesovertime.B)Acquisitionshavebeenaconvenientmethodforbankstogrowquicklyandcapitalizeoneconomiesofscale.C)Thebankingindustryhasbecomelessconcentratedinrecentyears.D)Allofthestatementsabovearecorrect.ANSWER:C2.Commercialbankshaveexpandedinrecentyearsnotonlybyacquiringotherbanksbutalsobyacquiringothertypesoffinancialservicefirms.A)TrueB)FalseANSWER:A3.Commercialbankscanbealenderoraborrowerwhenusingrepurchaseagreementsandloansinthefederalfundsmarket.A)TrueB)FalseANSWER:A4.Theoperations,management,andregulationofafinancialconglomeratearethesameirrespectiveofthetypesofservicesoffered.A)TrueB)FalseANSWER:B5.______areofferedtobankcustomerswhodesiretowritechecksagainsttheiraccount.A)TimedepositaccountsB)CDsC)DemanddepositaccountsD)MoneymarketdepositaccountsANSWER:C6.Whichtypeofsavingsaccounttransfersfundstoacheckingaccountwhenchecksarewritten?A)ATSB)passbooksavingsC)CDs2?CommercialBankOperations?2010CengageLearning.AllRightsReserved.ThiseditionisintendedforuseoutsideoftheU.S.only,withcontentthatmaybedifferentfromtheU.S.Edition.Maynotbescanned,copied,duplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.D)MMDAsANSWER:A7.A(n)__________accountprovidescheckingservicesaswellasinterest.A)demanddepositB)negotiableorderofwithdrawal(NOW)C)passbooksavingsD)timedepositANSWER:B8.Protectivecovenantsimposeconditionsinwhichthebankmustprovideadditionalloanstoaborrowertoprotecttheborrowerfromgoingbankrupt.A)trueB)falseANSWER:B9.A______isatimedepositofferedbysomelargebankstocorporations,withaspecificmaturitydate,minimumdepositof$100,000ormore,andasecondarymarket.A)retailCDB)negotiableCDC)marketCDD)protectiveCDANSWER:B10.Abank’ssourcesoffundsrepresentliabilitiesorequityofthebank.A)trueB)falseANSWER:A11.MoneymarketdepositaccountsdifferfromconventionaltimedepositsinthattheyA)specifyamaturity.B)offerlimitedcheckwritingprivileges.C)arelessliquid.D)noneoftheaboveANSWER:B12.TheintentoffederalfundstransactionsistoA)correctshort-termfundimbalancesexperiencedbybanks.B)correctlong-termfundimbalancesexperiencedbybanks.C)serveasapermanentsourceofbankcapital.D)serveastheprimarydepositorysourceoffunds.ANSWER:ACommercialBankOperations?3?2010CengageLearning.AllRightsReserved.ThiseditionisintendedforuseoutsideoftheU.S.only,withcontentthatmaybedifferentfromtheU.S.Edition.Maynotbescanned,copied,duplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.13.Foranygivenbank,federalfunds______representa(n)______.A)purchased;assetB)sold;liabilityC)purchased;liabilityD)AandBANSWER:C14.Thefederalfundsrateisgenerally______theTreasurybillrate.A)equaltoB)between.50percentand1.00percentbelowC)between.25percentand1.00percentaboveD)between3.00percentand4.50percentaboveANSWER:C15.Obtainingfundsthrough____________isnotacommonsourceoffundsforbankstosatisfyatemporarydeficiencyoffunds?A)issuingbondsB)thefederalfundsmarketC)repurchaseagreementsD)borrowingfromtheFederalReserveANSWER:A16.Whichofthefollowingistrue?A)TheprimarycreditlendingrateissetbythepresidentoftheUnitedStates.B)Thefe...
