QUESTION 1 Among the risks that commercial banks face: Interest rate risk All of the choices are correct Liquidity risk Credit (default) risk 1 points Save Answer QUESTION 2 The list of commercial bank assets include Investment securities Common and preferred stock equity Transaction accounts Loans Other assets such as premises, equipment, real estate etc." Cash 1 points Save Answer QUESTION 3 (.....) comprise the single largest asset category for a bank. Cash Transaction accounts Loans Investment securities Repo 1 points Save Answer QUESTION 4 Nontransaction deposits at banks include NOW accounts and demand deposits True False 1 points Save Answer QUESTIONS Industrial loan corporations (ILCs) are considered finance company foreign-owned loan corporation O credit card bank thrift institution nonbank bank 1 points Save Answer QUESTION 6 "Because a significant proportion of their funds come from customer deposits, commercial banks are called" OBS None of the choices Wholesale banks Depository institution Community banks 1 points Save Answer QUESTION 7 Which of the following can result in a negative net interest margin? Higher non interest income Lower non interest expense Decline in net interest income Positive net interest spread Increase in net interest income 1 points Save Answer QUESTION 8 Banks in the United States could be regulated by The Office of the Comptroller of the Currency (OCC) The Federal Reserve System (FRS) State authorities All of the choices are correct The Federal Deposit Insurance Corporation (FDIC) 1 points Save Answer QUESTION 9 "in comparison to small banks, larger banks typically have" larger net interest margins more core deposits more equity capital more off-balance-sheet activities all of the choices 1 points Save Answer QUESTION 10 Since 1980 the number of banks in the United States has been increasing dramatically due to deregulation of the industry True False 1 points Save