1. Which pair describes a major SOURCE and major USE of funds for a commercial bank?

A. Deposits / Savings Accounts

B. Borrowed Funds / Deposits

C. Deposits / Loans

D. Borrowed Funds / Equity

2. When U.S. imports are greater than U.S. exports, additional dollars flood the global market to pay for the imports. This situation results in an appreciation of the U.S. dollar in the world market.

True or False

3. Which pair represents a typical ASSET and LIABILITY on a bank's balance sheet?

A. Loan / Investment Security

B. Loan / Stockholder's Equity

C. Deposits / Federal Funds

D. Investment Securities / Deposits

E. None of the above