19. Bank Smeedex and Bank Hotskabob both have the same, negative return on equity (ROA). Smeedex has a leverage ratio of 10. Hotskabobs leverage ratio is 8. Which bank will have the lower return on equity (ROE)?

A. Smeedex B. Hotskabob C. The two ROEs are equal D. All of the above E. None of the above

20. Which of the following would be considered noninterest expense for a bank?

A. Fees earned on bankers acceptances B. Service charges on checking accounts C. Interest paid on repurchase agreements D. Both A and B E. None of the above

21. Historically, the Federal Reserves Primary Credit rate has been

A. Higher than the Fed Funds rate target B. Equal to the Fed Funds rate target C. Below the Fed Funds rate target D. Equal to the 30 day Treasury Bill rate E. None of the above