C. Measure the impact of changes in interest rates, exchange rates or commodity and derivative values on the operation d. Determine the volatility of various categories of deposits, the frequency and level of various classifications of borrowing the compliance to regulatory immediate cash flow needs, and the current position versus industry norms for meeting all immediate demand. e. Level, distribution and severity of various risk categorized assets, adequacy of loan loss allowance, treatment of underperforming commitments, and quality or reliability of underwriting standards. f. Peer group and compliance driven and determined adequacy of Equity, both primary (tier 1) and secondary (tier 2), evaluation of both dividend policies and earnings retention, and planning for growth, adverse effects, and possibility of adverse performance. 12. Broadly classifying the Assets on the balance sheet of a financial institution, each of the following belongs EXCEPT: a. Cash & Balances Due c. Securities (Investments & Secondary Liquidity) b. Loans & Leases d. Deposit Accounts 13. Which of the following is the largest item for Primary Liquidity and which of the following is the largest item for secondary liquidity: a. Deposits at the FED; US Treasures c. Deposits at the FED; commercial loans b. Vault Cash; Consumer Loans d. US Treasuries; Demand Deposits 14. Which of the following is an area of investment and lending in which all financial institutions have increased their involvement the most over the past 20 to 60 years as a percent of total: a. US Treasuries c. Mortgage Market b. Fixed assets d. Agriculture and Farming 15. TRUE or FALSE: Preferred Stock is considered secondary Equity. Forse 16. TRUE or FALSE: Financial Institutions, in general, use higher leverage than manufacturers. Tive 17. TRUE or FALSE: To understand the risk associated with Off-Balance Sheet Assets & Liabilities, one needs to read and analyze the financial statement footnotes carefully. True 18. Explain why the Glass-Steagall 1933 Act was so important to Financial Institutions: 19. When was the Glass-Steagall 1933 Act repealed: 2009 b. 1999 1979 1949 20. Net Non-Interest Income for margin) is expected to be: a. Unimportant to performance c. positive b. Negative d. an additional income generator 21. Explain the function of or use of the DuPont Method of Analysis: 22. Layers of regulations have been imposed on Financial Institutions over our 200+ year history to protect depositors and borrowers against the risk of failure, often referred to as: a. Safety and Soundness Regulation C. Investor Protection Regulation b. Foreign Investment Regulation d. Premium Generation Regulation 23. The difference between the Bid price and the Ask price on securities is referred to as: b. total loss a. spread policy premium c. dealer payment
