1.To assess the relative financial condition of a bank, you would focus on:

a) its financial statements

b) its leverage ratios

c) the bank's ratios compared with its peer group

d) none of the above

2.When constructing ratios, average balance sheet data should be used:

a) true

b) false

3.The ability to repay a firm is measured by a firm's:

a) capacity

b) collateral

c) character

d) capital

4.Banks with only an internet or online presence have led to more expenses to individuals.

a) true

b) false