If the deposits/loans ratio is relatively high for a bank, this implies an emphasis on: a. securities to finance loans b. deposit sources of funds to finance loans c. decreasing the quantity of loans outstanding d. high deposit to equity

If the deposits/loans ratio is relatively high for a bank, this implies an emphasis on: a. securities to finance loans b. deposit sources of funds to finance loans c. decreasing the quantity of loans outstanding d. high deposit to equity

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 8Q

See similar textbooks

Related questions

Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Bank liquidity refers to measures of cash and other assets equivalent to cash which is available…

Q: All of the following are common ratio measures of bank liquidity EXCEPT: a. loans/deposits b.…

A: The liquidity ratio refers to the short-term financial ratio that determines the ability to meet the…

Q: (b) Given a formula for Return on Equity (ROE) as below, evaluate the SIBB's financial efficiency. X…

A: As per our protocol we provide solution to one question only or first three sub-parts only but as…

Q: profit margin ratios of bank proftability? please use in-text referencing

A: Gross profit margin may be a live of profit that shows the proportion of revenue that exceeds the…

Q: Provide the formulas to calculate the following items from a company's financial statement: 1. Cash…

A: Ratio analysis is a method of analyzing a company's financial performance by comparing different…

Q: Which one of the following statements is FALSE? Select one: O a. Holding more liquid funds will…

A: Introduction and explanation :The yield of an asset refers to the return or profit generated from…

Q: The financial performance of both Commercial Banks and Savings Banks is measured using the Net…

A: The net interest margin is referred as the net benefit of lending which derived from the lending and…

Q: Overdrafts are a result of a. loans made against certificates of deposit b. banks paying wire…

A: Very easy and low cost convenient way of getting loan are draft loans.

Q: Choose from the following list of terms and phrases to best complete the following statements. a.…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: Rank the following types of bank liabilities, first according to their level of liquidity risk, and…

A: Liquidity represents the inability of the company to pay off its obligation that would affect the…

Q: I. What are terms of credit? From the viewpoint of a…

A: The following concepts are answered below.

Q: A bank's required reserve ratio is equal to: Checkable Deposits/Required Reserves Net Worth/Assets…

A: In the context of the given question, we are required to explain the required reserve ratio which is…

Q: Risk-weighted assets increase Risk-weighted assets decrease

A: Step 1 Risk assets are calculated by adding the amount of risk to the appropriate risk weight of the…

Q: When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a…

A: Factoring is a type of financial transaction in which a business sells its accounts receivable to a…

Q: If a bank has a positive repricing gap (RSAs > RSLs), then: Does this bank have reinvestment or…

A: The problem case focuses on identifying the impact of the positive repricing gap on the risk and…

Q: If you are a bank assessing the long-term credit of a company, you are usually most interested in…

A: The term "liquidity" describes a company's capacity to quickly sell off assets to earn cash as well…

Q: Which of the following has caused banks difficulty in estimating liquidity needs? A. competition for…

A: It is the institution that deals with financial and monetary transactions in the economy.

Q: What are CAMELS? They are ratings assessed by bank regulators after on-site examinations.Which one…

A: The acronym “CAMEL” refers to the five components of a bank's condition that are assessed: Capital…

Q: what are the determinants of bank profitability ratios? please use in-text referencing

A: Bank Profitability Bank Profitability: Like all businesses, banks profit by earning extra money…

Q: When both deposit and loan interest rates increase at the same speed in the market, a bank tends to…

A: When both deposit rates and lending rates increase the bank tends to make profit out of this. Always…

Q: Which of the following is NOT a criterion for evaluating bank liquidity used by regulators? a.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is NOT an advantage of depositing funds into a bank account (compared to…

A: Depositing funds with the banks is considered the safest investment and due to less risk it fetches…

Q: 4. Gap and Duration Analysis a. Take the following balance sheet, which of the assets and labilities…

A: GIVEN Gap and Duration Analysis is

Q: If a company is worried about having enough cash to pay interest to their bondholders, rent to their…

A: Solution: Liquidity means easy of any asset that can be converted in to ready cash in a very short…

Q: Depositing money into a commercial bank is investing in a

A: Step1: Commercial banks form part of an organized money market. Commercial banks deals in money and…

Q: A bank wants to implement a loan pricing model and has to look at several variables to consider.…

A: A loan pricing model is a financial tool or framework used by banks and financial institutions to…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

If the deposits/loans ratio is relatively high for a bank, this implies an emphasis on:
a. securities to finance loans
b. deposit sources of funds to finance loans
c. decreasing the quantity of loans outstanding
d. high deposit to equity

Volatile liabilities in the Bank’s performance report include all of the following EXCEPT:
a. checking accounts
b. large CDs
c. purchased deposits
d. deposit sources of funds

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If you are a bank assessing the long-term credit of a company, you are usually most interested in evaluating which one of the following? a. liquidity and profitability. b. solvency and marketability. c. liquidity and solvency. d. profitability and solvency.
A bank is least likely to use which of the following ratioswhen analyzing the likelihood that a borrower will payinterest and principal on its loans?a. Current ratio. c. Times interest earned ratio.b. Debt-to-assets ratio. d. Price/earnings ratio.
A bank's net interest margin represents the proportion of its investments that are financed with borrowed funds. Group of answer choices: True False
How Liquidity coverage ratio (LCR) & Net stable funding ratio (NSFR) can ensure the liquidity of bank , explain with some example.
Provide the formulas to calculate the following items from a company's financial statement: 1. Cash Position Indicator2. Liquid Securities Indicator3. Net Fed Funds and Repurchase Agreements Indicator4. Capacity Indicator5. Pledged Securities Ratio6. Hot Money Ratio7. Core Deposit Ratio8. Deposit Composition Ratio9. Loan Commitments Ratio
Assess the bank in terms of profitability, liquidity, and capital adequacy. Use appropriate ratios to support your assessment.
When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. drafting
The financial performance of both Commercial Banks and Savings Banks is measured using the Net Interest Margin (NIM). a, Explain what the Net Interest Margin is measuring and evaluating. b, Cite an example of why the Net Interest Margin could turn negative.
Styles Editing QUESTION TWO Voice Sensitivity Editor Rem Selamat Islamic Bank Berhad (SIBB) just announced its financial report for the year ended 2016. Table below is a summary of CIBB's financial report. (a) Items RM (000) Income Statement Operating Revenue Net Income Expenses Profit after tax and zakat 3,662,444 1,540,333 700,343 543,443 Statement of Financial Position Current Asset Current Liability- Demand deposit Total Debt Total Assets 4,332,300 10,635,054 42,091,092 45,620,442 3,729,590 Total Equity Capital Evaluate SIBB's performance based on the following financial ratios and explain what each ratio means. i. The capability of management in converting assets into net earnings. i. The effectiveness of management to control cost, expenses and service price O Focus 目 (United Kingdom) ENC
define gross profit margin, net profit margin and operating profit margin ratios of bank proftability? please use in-text referencing
what are the determinants of bank profitability ratios? please use in-text referencing
Choose from the following list of terms and phrases to best complete the following statements. a. Cash c. Outstanding check e. Cash over and short b. Cash equivalents d. Liquidity f. Voucher system 1. The category includes currency, coins, and deposits in bank accounts. 2. The term refers to a company’s ability to pay for its current liabilities. 3. The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.