1. What are the differences between community banks, regional banks, and money-center banks? Contrast the business activities, location, and markets of each of these bank groups. 2. What are the major uses of funds for commercial banks in the UAE? What are the primary risks to a bank caused by each use of funds? Which of the risks is most critical to the continuing operation of the bank? 3. The following balance sheet accounts (in millions of dollars) have been taken from the annual report for a U.S. bank. Arrange the accounts in balance sheet order and determine the value of total assets. Based on the balance sheet structure, would you classify this bank as a community bank, regional bank, or a money center bank? ( explain why ) Assets Cash $ 2,660 Fed funds sold 110 Investment securities 5,334 Net loans 29,981 Intangible assets 758 Other assets 1,633 Premises 1,078 Total assets $41,554

Liabilities and Equity Demand deposits $ 5,939 NOW accounts 12,816 Savings deposits 3,292 Certificates of deposit 9,853 Other time deposits 2,333 Short-term borrowing 2,080 Other liabilities 778 Long-term debt 1,191 Equity 3,272 Total liability and equity $41,554