Commercial Banks Flashcards
1
Q
Commercial banks
A
______________ are the largest group of financial institutions in terms of total assets
2
Q
__________ generate the most revenue for banks
A
loans
3
Q
__________ generate revenue and provide banks with liquidity
A
investment securities
4
Q
________ are held to meet reserve requirements and to provide liquidity
A
Cash assets
5
Q
Other assets include
A
premises and equipment, other real estate owned, etc.
6
Q
4 risks commercial banks face
A
credit risk, liquidity risk, interest rate risk, insolvency risk
7
Q
Commerical banks liabilities
A
current accounts/checking accounts demand deposit accounts call deposits negotiable order of withdrawal account money market demand accounts time deposits savings accounts cds bonds/notes
8
Q
Off-Balance Sheet Activities
A
Commerical Banks engage in many fee-related activities that are conducted off the balance sheet
