Study Unit 2 - Measuring and Evaluating the Performance of Banks

Question 1

Name 4 Types of Bank Assets

Answer 1

1. Cash in Vault
2. Cash Due held in other depository institutions
3. Loans and Leases made available to customers
4. Miscellaneous Assets

Question 2

Name 2 types of Bank Liabilities

Answer 2

1. Deposits from customers

2. Non-Deposit borrowings from the Money Market or Capital Market

Question 3

Explain the Banks Balance Sheet in terms of the equation:

C + S + L+MA = D + NDB + EC

Answer 3

C- Cash in vault or being held with other Financial Institutions
S- Securities
L - Loans and Leases
MA - Miscellaneous Assets =

D - Deposits
NDB - Non-Deposits Funds
EC - Owners Equity