2. Bank deposits and other liabilitiesUse the following categorization table to identify transaction and nontransaction accounts.Transaction Account Nontransaction AccountSavings, or Passbook AccountsMoney Market Deposit AccountsNOW AccountsCertificates of Deposit, CDDemand DepositsWhy and when were NOW accounts created?In the 1970s as a way to get around restrictive banking regulationsIn the early 2000s so that households could tap into the rising value of their housesIn the 1980s as a way for bank customers to invest in the stock marketDuring World War II to deal with wartime shortages

Let's complete the table first categorising transaction and non-transaction:Explanationa) Savings…

2. Bank deposits and other liabilities Use the following categorization table to identify transaction and nontransaction accounts. Savings, or Passbook Accounts Money Market Deposit Accounts NOW Accounts Certificates of Deposit, CD Demand Deposits Transaction Account Nontransaction Account Why and when were NOW accounts created? n In the 1970s as a way to get around restrictive banking regulations In the early 2000s so that households could tap into the rising value of their houses In the 1980s as a way for bank customers to invest in the stock market O During World War II to deal with wartime shortages

2. Bank deposits and other liabilities Use the following categorization table to identify transaction and nontransaction accounts. Savings, or Passbook Accounts Money Market Deposit Accounts NOW Accounts Certificates of Deposit, CD Demand Deposits Transaction Account Nontransaction Account Why and when were NOW accounts created? n In the 1970s as a way to get around restrictive banking regulations In the early 2000s so that households could tap into the rising value of their houses In the 1980s as a way for bank customers to invest in the stock market O During World War II to deal with wartime shortages

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

I need the answer as soon as possible
What are bank assets used for? Bank liabilities are the sources of bank ________? Bank capital is the contribution of the bank's owners; it acts as a cushion against what? Banks make a profit for their owners. Measures of a bank's profitability include what four things? Banks' off-balance-sheet activities have become increasingly important in recent years. What are these two things? Banks face several types of risk in day-to-day business. List them:
Should a bank always insist on having security when lending to a customer? Explain your position.
Give typing answer with explanation and conclusion What types of restrictions are imposed on banks? Why do we regulate banks?
Briefly compare bank financial management practices for a simple retail bank with that of a modern bank.
Match up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks
A ____ is an interest-bearing checking account. Group of answer choices NOW account certificate of deposit Treasury bill regular checking account Series EE US savings bond
Our textbook claims that one of the key services banks provide is maturity intermediation: what exactly does this mean? (Choose an answer from the list below; only one is correct.) Reference: Chapter 11 and/or Chapter 1 Banks borrow money from their younger customers and lend it to their older customers. Banks gather small deposits and use them to make large investments, allowing small investors to collectively buy large assets. Banks are funded with deposits that they promise to return on demand but use them to make long-term loans, which creates a mismatch in the maturities of their assets & liabilities.
Muneer is a customer of Bank Muscat who made use of the service provided by the bank called Lock box services. Which of the following statement is not suitable to this? This helps efficiently handle small volumes of payments Banks will get the funds into bank's account Helps efficiently handle large volume of payments Customers can mail nearby locations
what happen to the account if the owner pay trade payable using own personal bank?
Bank can be a source of short-term funding in terms of credit card applications. These fundings on credit cards make sure that regular payments should be made. Group of answer choices True False
Which of the following is not a common source of funds for a small business: Banks Equity in your home Margin Accounts Personal Savings A Promissory Note states which of the following: The amount of the loan The collateral for the loan The interest rate of the loan All of the above

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