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.
A contingent item that may eventually be placed on the right-hand side of the balance sheet or expensed on the income statement is a(n)
off-balance-sheet liability.
Loans past due 90 days or more and loans that are not accruing interest because of problems of the borrower are called
noncurrent loans.
Which of the following is the primary regulator of bank holding company activities?
Federal Reserve
Banks differ from other types of depository institutions in that
- more diversified asset portfolios
- banks obtain funds from more different types of sources
- the average size bank is larger than other depository institutions
Advantages of going global for U.S. banks include all but which one of the following?
Low fixed costs involved in international expansion
An ILC is a type of
nonbank bank.
