31) Which of the following do banks hold as insurance against the high costs of unanticipated deposit outflows? a) Excess reserves b) Corporate bonds c) non-traded private placement bonds d) mortgage loans e) all of the above 32) The _______ the costs associated with unexpected deposit outflows, the _______ the amount of excess reserves a bank will choose to hold. a) Lower, smaller b) Lower, larger ) Higher, smaller d) Higher, larger e) None of the above 33) Banks fail when the value of bank _______ falls below the value of bank , causing the bank to become insolvent. a) Reserves, required reserves b) Total assets, total liabilities c) Loans, secondary reserves d) Income, expenses e) Total assets, retained earnings 34) The single largest source of interest income for a bank is generally a) The Interest on its securities portfolio b) The interest on its loan portfolio c) Its excess reserves d) Its deposit accounts e) Service charges on deposit account 35) The largest operating expense for a ban a) Salaries and employee benefits b) Interest paid on discount loans c) Interest paid on federal funds borrowing d) Interest paid on deposits