Q.1
Commercial banks earn money in all of the following EXCEPT:
  • Investing in other companies
  • Charging fees for their services
  • Taking a percentage off of all deposits
  • Collecting interest on loans
Q.2
Neither income gap analysis nor duration gap analysis are useful tools for telling a financial institution manager the institution's degree of exposure to interest-rate risk.
  • True
  • False
Q.3
It accepts deposits from individuals and organisations that have excess funds and provide loans to those who are in need. This financial institution is called ...
  • investment banks
  • commercial banks
  • credit unions
  • insurance companies
Q.4
Federal funds are not sold by banks to other banks
  • True
  • False
Q.5
Additional measures of bank performance include
  • ROA and ROE
  • ROA, ROE and the NIM (net interest margin)
  • ROE and the NIM
  • All of above
Q.6
Credit Unions
  • These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
  • These are also known as savings and loans associations or building societies.
  • This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
  • This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
Q.7
Which of the following best describes an investment bank...
  • These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
  • These are also known as savings and loans associations or building societies.
  • This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
  • This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
Q.8
Governments can raise money to finance public spending through the sale of...
  • James
  • Bonds
  • Shares
  • Stocks
Q.9
A deposit account is best described as...
  • A current account, savings account or another type of bank account which allows money to be deposited and withdrawn by the account holder.
  • A safe place to store you savings
  • Used by people for everyday transactions
  • An account where customers can go overdrawn on the amount they hold in it
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