2. Question 13

   Questions 13 to 15 refer to the following data for Bank One of Chicago

   Bank One's Capital Ratio is closest to

   1. 100%

   2. 50%

   3. 3%

   4. 30%

3. Question 14

   Bank Ones Liquidity Coverage Ratio ( High quality liquid assets/ Cash outflows) is closest to :

   1. 2.20x

   2. 6.05x

   3. 1.09x

   4. 9.01x

4. Question 15

   Bank One's return on equity is closest to

   1. 20%

   2. 7%

   3. 10%

   4. 40%

5. Question 16

   Long-term U.S. interest rates are set by the Federal Reserve

   1. True
   2. False
6. Question 17

   Money placed into an FDIC insured depository institution is guaranteed for an unlimited amount

   1. True
   2. False
7. Question 18

   Bank regulators prefer higher capital ratios to lower capital ratios

   1. True
   2. False
8. Question 19

   At a country level, an open capital account is synonymous with a high level of capital mobility

   1. True
   2. False
9. Question 20

   The failure of a large, interconnected financial institution can cause catastrophic economic outcomes to the worlds economy. Because of this possibility, financial regulators are likely to

   1. Discourage consolidation in the banking industry and increase bank capital requirements

   2. Encourage consolidation in the banking industry and increase bank capital requirements

   3. Encourage consolidation in the banking industry and decrease bank capital requirements

   4. Discourage consolidation in the banking industry and decrease bank capital requirements

Questions 13 to 15 refer to the following data for Bank One of Chicago Item Total Assets Risk Weighed Assets High Quality Liquid Assets Total Liabilities Long Term Debt Cash outflows-30-day horizon Net Income Total Equity Amount $1,000 400 600 700 100 550 20 300 Bank One's Capital Ratio is closest to A 100% B) 50%