1. The higher the interest rates on its loans, the wider the banks interest rate spread, or margin (assuming it is positive). (T/F)
2. A company has produced profits for the year. The lower the payout ratio, the greater the increase in book value for the start of the next year. (T/F)
3. Most corporations register at the federal level; a small number register in their state of domicile. (T/F)
4. The Federal Deposit Insurance Corporation insures interbank borrowing & lending against default. (T/F)
5. EBITD is equivalent to profits-before-taxes. (T/F)
6. The greater the depreciation allowance, the more beneficial to the company. (T/F)
7. When GDP grows more slowly than its Potential for a number of quarters, the Federal Reserve usually lowers (or at least does not raise) its target federal funds rate. (T/F)
8. All else the same, if a companys interest rate on its borrowings goes down, its coverage ratio will go up. (T/F)
9. Banks are required to pay interest on all deposits. (T/F)
10. The GDP Gap refers to the difference between the countrys savings rate and its growth rate. (T/F)