Commercial banks earn money in all of the following EXCEPT:
Investing in other companies
Charging fees for their services
Taking a percentage off of all deposits
Collecting interest on loans
Q.2.
Neither income gap analysis nor duration gap analysis are useful tools for telling a financial institution manager the institution's degree of exposure to interest-rate risk.
True
False
Q.3.
It accepts deposits from individuals and organisations that have excess funds and provide loans to those who are in need. This financial institution is called ...
investment banks
commercial banks
credit unions
insurance companies
Q.4.
Federal funds are not sold by banks to other banks
True
False
Q.5.
Additional measures of bank performance include
ROA and ROE
ROA, ROE and the NIM (net interest margin)
ROE and the NIM
All of above
Q.6.
Credit Unions
These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
These are also known as savings and loans associations or building societies.
This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
Q.7.
Which of the following best describes an investment bank...
These banks specialise in helping large business organisations to raise finance to fund their operations and expansion, usually through helping them to issue an sell stocks and shares on the stock market.
These are also known as savings and loans associations or building societies.
This is a co-operative, not-for-profit organisation, owned by and for its members. They provide low cost loans for people on low incomes.
This type of bank offers services based on the principles of Sharia Law which forbids interest charges and payments.
Q.8.
Governments can raise money to finance public spending through the sale of...
James
Bonds
Shares
Stocks
Q.9.
A deposit account is best described as...
A current account, savings account or another type of bank account which allows money to be deposited and withdrawn by the account holder.
A safe place to store you savings
Used by people for everyday transactions
An account where customers can go overdrawn on the amount they hold in it
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