Chapter 11 Quiz Flashcards
A bank that specializes in retail or consumer banking in a local market
community bank
A bank that engages in a complete array of wholesale commercial banking activities and usually also provides retail banking services
super-regional bank
A bank that is located in a financial center and relies on nondeposit or borrowed sources of funds for a significant portion of its liabilities
money center bank
Bank assets tend to have _____________ maturities and _____________ liquidity than/as bank liabilities.
longer; lower
In comparison to small banks, larger banks typically have
more off-balance-sheet activities.
In terms of profitability, a well-run bank usually has an ROA of
0.5-3 percent.
Which of the following could result in a negative NIM?
Decline in net interest income
Most of the changes in size, structure, and composition of the banking industry in recent years are due to
mergers and acquisitions.
About __________________ of federally insured banks are nationally chartered and about __________________ of federally insured banks are members of the Federal Reserve.
20 percent; 34 percent
Nationally chartered banks receive chartering and merger approval from the
Office of Comptroller of the Currency.
State chartered banks ________________ be members of the Federal Reserve System and nationally chartered banks ________________ be members of the Federal Reserve System.
may; must
The largest single category of loans on the typical bank’s balance sheet in 2013 was
real estate loans.
Equity capital at commercial banks in 2013 comprised about ____________ of liabilities and equity.
11 percent
Commercial banks are the __________________ financial intermediary in the United States as measured by asset size.
largest
The provision of banking services to other banks, such as check clearing, foreign exchange trading, and so forth, is an example of
correspondent banking.
