Commercial banks: a) implement monetary policy. b) are nonprofit organizations that lend and borrow funds. c) are financial intermediaries that lend funds and accept deposits. d) all of the above.
9. Commercial banks:
a) implement
b) are nonprofit organizations that lend and borrow funds.
c) are financial intermediaries that lend funds and accept deposits.
d) all of the above.
11. First national bank has assets of $900,000 and liabilities of $600,000. First National
Trust’s owner’s equity is:
a) $0.
b) $300,000.
c) $600,000.
d) $900,000.
12. A bank has reserves of $40, loans of $110, deposits of $90, and owners’ equity of
$60. Which of the following represents the bank’s total assets?
a) $180
b) $110
c) $130
d) $150
Table 14.1: FIRST COMMERCIAL BANK
Asset Liabilities___________________
$150,000 Total Reserves: $1,000,000 Deposits
$100,000
? Excess Reserves
? Loans
$1,200,000 Total $1,200,000 Total________
13. Refer to Table 13. 1. First Commercial bank’s excess reserves equal $__________.
a) 150,000
b) 250,000
c) 100,000
d) 50,000
14. Refer to Table 13.1. First Commercial Bank’s total loans equal $______________.
a) 1,050,000
b) 1,200,000
c) 1,150,000
d) 1,250,000
15. Bank of New City has $250 million in deposits. Bank of New City is meeting its
reserve requirement and has no excess reserves. It has $50 million in reserves. Bank of New
city faces a
a) 1.25%.
b) 4%.
c) 20%.
d) 37.5%.
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