Question 1 1. The ratio of a bank's interest income from its loans and security investments less interest expenses on debt issued divided by total earning assets measures a banks: Hot yet answered Marked out of .00 Select one: O a. Net return before special transactions Flag question O b. Net interest margin O c. None of the above O d. Return on assets O e. Net operating margin Question 2 10. What do loans and security investments represent for a bank? Not yet answered Marked out of 1.00 P Flag question Select one: O a. None of the above O b. Market valued assets O c. Earning assets O d. Classified assets O e. Discretionary accounts 11. The so-called tax-management efficiency ratio consists of: Question 3 Not yet answered Marked out of 1.00 Flag question Select one: O a. None of the above. O b. Taxes owed over total liabilities of a bank O c. Tax-exempt assets over taxable assets O d. Total tax liabilities over net income O e. Net income over pre-tax net operating income 12. The ratio of net loans to total assets is considered to be a measure of what form of risk in banking? Question 4 Not yet answered Marked out of 1.00 Flag question Select one: O a. Market risk O b. Credit risk O c. Liquidity risk O d. None of the above O e. Interest-rate risk 13. OE for a bank reflects: Question 5 Not yet answered Marked out of 1.00 P Flag question Select one: a. All of the above O b. None of the above O c. The bank's use of leverage O d. How well the bank controls expenses O e. How well the assets of the bank are managed 14. A ratio that can be used to measure a bank's credit risk would be: Question 6 Not yet answered Marked out of 1.00 Flag question Select one: a. Interest sensitive assets/interest sensitive liabilities b. Nonperforming loans/total loans O c. Net loans/total assets O d. Total assetsumber of full time employees 15. A bank that has a low profit margin most likely: Question 7 Not yet answered Marked out of 1.00 P Flag question Select one: O a. Has a small amount of liquidity risk O b. Has a small amount of financial leverage O c. Is doing a poor job of controlling expenses O d. Has assets that are not very productive O e. None of the above Question 8 16. A bank that has a high asset utilization (AU) ratio most likely: Not yet answered Marked out of 1.00 Flag question Select one: O a. Has a small amount of financial leverage O b. None of the above O c. Is allocating assets to the most productive investments O d. Has a small amount of liquidity risk O e. Is doing a poor job of controlling expenses Question 9 17. Which of the following would be the best example of a ratio used to examine the cost of one of the bank's liabilities? Not yet answered Select one: Marked out of 1.00 O a. Demand deposits/ total assets O b. Interest sensitive assets/ interest sensitive liabilities P Flag question O c. Interest on real estate loans/ total real estate loans O d. Interest on time deposits/ total time deposits Question 10 18. Which of the following would be the best example of a ratio used to examine the return of one of the bank's assets? Not yet answered Marked out of 1.00 Select one: O a. Interest on time deposits/ total time deposits O b. Interest on real estate loans/ total real estate loans P Flag question O c. Interest sensitive assets/ interest sensitive liabilities O d. Demand deposits/ total assets