A Bank's Earning Assets (driven by the creation of Interest Income) consists of: the Security Portfolio, Fed Funds Sold and Reverse Repos, Loans and Leases, Trading Assets, and Interest-Bearing Cash

True

False

Goodwill does not amortize or depreciate on a quarterly basis. Instead, it is tested for impairment.

True

False

If the economy is expected to enter into a long-term recession, Banks will most likely __________ its Allowance (or Total Reserves).

Decrease

Increase