1. What is usually the largest category of bank liabilities and stockholders equity?

a. Deposits

b. Other liabilities

c. Common equity

d. Stockholders' equity

2. When underwriters issue securities on a best effort basis,they:

a. sell as much of the stock as possible, but with no guarantee

b. submit a bid for purchase, which the issuer compares to other bids.

c. buy the entire issue from the firm

d. guarantee that the issuer will receive the spread