Chapter 15 Answers

docx

School

SUNY Canton *

*We aren’t endorsed by this school

Course

325

Subject

Economics

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by BailiffSeahorseMaster924

According to recent research, bank stock prices usually drop within a week after a dividend cut is announced. True Deposit insurance subsidized by government encourages banks to increase their ratios of capital to deposits. False Question 3 1 / 1 point The risk that a customer with whom the bank has entered into a contract with, will fail to pay or perform, forcing the bank to find a replacement contract with another party that may be less satisfactory is what form of risk listed below? A) Counterparty risk Questi on 4 0 / 1 point Equity notes are considered to be part of Tier 1 capital. False Question 5 1 / 1 point Credit risk models measure the market risk of a portfolio whose value may decline due to adverse movements in interest rates, stock prices, currency values, or commodity prices.

False Question 6 1 / 1 point A bank that is "critically under-capitalized": D) will be placed into conservatorship or receivership if its capital level is not increased within a certain Questi on 7 1 / 1 point Geographic diversification refers to the spreading out credit accounts and deposits among a wide variety of customers within a country, including large and small business accounts, different industries, and households with a variety of sources of income and collateral. False Question 8 1 / 1 point The internal growth rate for a bank is a function of which of the following factors? All options A) Profit margin B) Asset utilization C) Equity multiplier D) Earnings retention ratio

E) All of the options are correct Questi on 9 1 / 1 point If the ratio of tangible equity capital to total assets is 2 percent or less, it is subject to being placed in conservatorship or receivership unless the institution's principal regulator and the FDIC determine that it would be in the public interest to allow the institution to continue under present ownership and management. True Question 10 1 / 1 point In the field of banking, capital refers principally to those funds contributed by a bank's owners. True Question 11 1 / 1 point According to the textbook, the role of capital is to: all options A) provide a cushion against failure risk. B) provide funds needed to charter, organize, and operate a bank. C) promote public confidence. D) support growth and the development of new services E) All of the options are correct.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Questio n 12 1 / 1 point The fundamental purposes of regulating bank capital cited in the textbook include which of the following? B) To preserve public confidence in banks. Questio n 13 0 / 1 point Recent research suggests that interest-rate contracts display considerably less risk exposure than do foreign-currency contracts. True Question 14 0 / 1 point Regulatory capital focuses on the market value of equity. False Question 15 1 / 1 point Off-balance-sheet commitments of banks carry capital requirements under the international (Basel) capital standards. True

Related Documents

Practice Midterm 2 (with solutions).pdf

Practice Midterm 2 (no solutions).pdf

Practice test .pdf

Chapter five think about it questions.pdf

Supermarket Woman - Extra Credit.docx

Chapter 19 Answers.docx

STAT 218 Quiz 2.docx

Project 5 QR Percentages Version A Cherokee Williams.docx

Barnett Final Research Proposal STUDENT ACHIEVEMENT ON ONLINE VS PAPER ASSESSMENTS.pdf

week 10 Activity.docx

MAT240 Knox Project One .docx

Chapter 2 warmup.docx

Recommended textbooks for you

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:Cengage Learning

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Essentials of Economics (MindTap Course List)

Economics

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Brief Principles of Macroeconomics (MindTap Cours...

Economics

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning