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banking > banking > Flashcards

banking Flashcards

1
Q

This is the term for how banks make money.

A

Net Interest Income

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2
Q

Term for the amount of loan a portfolio can support.

A

Lending Value or Borrowil
Base

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3
Q

This is the dual mandate of the Federal Reserve.

A

maximum employment and price stabilization

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4
Q

These agencies provide oversight to the banking system.

A

Federal Reserve, OCC, FDIC

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5
Q

This bank had a run on dThis bank had a run on deposit recently

A

SVB

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6
Q

Residential mortgages are bundled and sold in the secondary market are called.

A

MBS

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7
Q

These groups are considered financial intermediaries.

A

Hedge Funds, Private Equity, or Banks

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8
Q

This is the dual mandate of the Federal Reserve.

A

maximum employment and price stabilization

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9
Q

This is how much each depositor receives in insurance for their deposit.

A

250,000$

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10
Q

True or false. If a bank is illiquid, automatically insolvent.

A

False

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11
Q

Reserves required for primary residence

A

10%

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12
Q

This occurs when there isn’t enough collateral to support a loan

A

MARGIN CALL

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13
Q

These are the types of reasons for using a SBL

A

Access to liquidity

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14
Q

True or False. This is the most expensive type of lending.

A

False

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15
Q

This activity is done every year fol
GSIB banks.

A

Stress Testing

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16
Q

DTI

A

Debt to Income

17
Q

The tools the Federal Reserve uses to influence the economy.

A

-increase/decrease Fed Fund Rate,
-increase/decrease Discount Rate,
-Purchase Treasuries

18
Q

The Federal Reserve does this to tighten the money supply.

A

Sell Treasuries/ open market transactions

19
Q

This is what an Adjustable Rate Mortgage adjusts to when it matures.

A

1 year SOFR

20
Q

This is how much a non taxable account is discounted by when calculating asset pro forma.

A

40%

banking (1 decks)

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