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Short-term notes payable: O Can replace an account payable O Can be issued in return for money borrowed from a bank O Are negotiable O Are an unconditional promise to pay O All of the above DVO

When deposit inflows exceed loan demand a bank can A. No answer text provided. B. buy back shares C. give larger dividends to customers D. invest to safe fixed income securities -

Which of the following statements about noninterest-bearing notes is false? Select the correct response: The principal amount of a noninterest-bearing note is its future cash flows discounted at its effective interest rate The face amount of a noninterest-bearing note may include both the principal and interest as a single amount to be paid back at maturity date Noninterest bearing is not a descriptive designation for this type of note because such notes do bear interest The effective rate on a short-term noninterest-bearing note, with a specified term, cannot be determined unless it is given on the face of the note

A guarantee issued by an FI that obligates the FI to pay if the purchaser of the letter defaults on a debt is called a a. loan commitment. b. forward rate agreement. c. credit swap agreement. d. collar. e. None of these options are correct.

Which of the following is FALSE The APR is the annual rate that is required by law to be disclosed on loan documents. The EAR allows for comparison between savings accounts that have different compounding frequencies US treasury bills are considered pure discount loans the cash flows of preferred stock are considered an annuity. car loans are considered amortized loans because each payment includes interest and some principal

L A Moving to another question will save this response. Question 1 Which of the following statements is (are) true? (i) Bank certificates of deposits are capital market instruments. (ii) A dollar-denominated deposit at a Chinese bank located in Japan is called Eurodollar. (iii) An overnight repurchase agreement is similar to an overnight collateralized loan. O (i) and (iii) only (ii) and (iii) only (i) and (ii) and (iii) O (i) and (ii) only A Moving to another question will save this response.

Private mortgage insurance is used to a. to ensure timely payments of escrow, taxes, and other fixed charges. b. reduce the default risk to lenders c. protect borrowers if they cannot make periodic payments d. in lieu of a bond for termites   Covenants in loan agreements are used to a. make representations in agreements b. secure collateral c. control the borrower’s behaviour d. as guaranties   The Barbados branch of a foreign bank has a ROE that is three times greater than the TT branch. What may be the reason for this difference? a. The Barbados branch has lower equity b. The Barbados branch is more profitable than the TT branch c. The Barbados branch has proportionately higher profits to equity d. The TT branch has higher equity   Assume a single-payment $1,000 loan for one year at 16 percent. The APR is a. 24 percent b. 16 percent c. none of the above d. 32 percent