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Question
What is the equity multiplier for a bank where equity is equal to 12% of total assets?a. 83.33
b. 1.12
c. 0.88
d. 12.00
e. 8.33
Answer
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Related questions
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A London based firm has a subsidiary located in New York. The subsidiary has $1,000 in assets, $750 in liabilities and $250 in equity. The current spot rate is $1.60/£.If the spot rate changes to $1.50/£, what will be the firm's gain or loss?a. $10.42 gainb. £10.42 gainc. $10.42 lossd. £10.42 losse. cannot be determined
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d. Currency received from the Federal Reserve
e. Deficits at the local clearinghouse
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c. vault cash computation period.
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Which of the following does not directly influence the amount of required reserves a bank must hold?
a. The required reserve ratio.
b. The dollar amount of cash items in process of collection.
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Q:
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Q:
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Q:
What is the return on equity for a bank that has an equity multiplier of 14, an interest expense ratio of 4%, and a return on assets of .9%?
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Q:
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a. financial leverage.
b. operating leverage.
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d. interest rate exposure.
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Q:
Jumbo certificates of deposit (CDs) typically:
a. have maturities greater than 10 years..
b. are negotiable.
c. are $1 million in size.
d. All of the above
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Q:
The McFadden Act of 1927 forbids national banks from underwriting equities.
Q:
The _________ repealed the Glass-Steagall Act.
a. Riegle-Neal Interstate Banking and Branching Efficiency Act
b. Gramm-Leach-Bliley Act
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Derivatives can be a cost-effective way to manage interest rate risk.
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When futures prices falls, buyers gain at the expense of sellers.
Q:
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Q:
Return on equity can be decomposed into:
a. the sum of return on assets and the equity multiplier.
b. the product of return on assets and the equity multiplier.
c. the product of the profit margin and the equity multiplier.
d. the sum of the profit margin and the equity multiplier.
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Q:
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a. the burden.
b. NOW balances.
c. reserve requirements.
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Q:
Securities that require unrealized gains or losses to be recorded on the income statement are called:
a. held-to-maturity securities.
b. trading account securities.
c. available-for-sale securities.
d. revenue securities.
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Q:
Covered interest rate arbitrage is possible when:
a. both currencies are appreciating.
b. the actual inflation rates are identical in both countries.
c. the difference in the interest rates in two countries exactly equals the spot-to-forward exchange rate differential.
d. the difference in interest rates in two countries is out of line with the spot-to-forward exchange rate differential.
e. none of the above
Q:
A London based firm has a subsidiary located in New York. The subsidiary has $1,000 in assets, $750 in liabilities and $250 in equity. The current spot rate is $1.60/£.If the spot rate changes to $1.50/£, what will be the firm's gain or loss?a. $10.42 gainb. £10.42 gainc. $10.42 lossd. £10.42 losse. cannot be determined
Q:
Term loans are generally repaid with funds from:
a. investing cash flows.
b. issuing new debt.
c. reductions in inventory and receivables.
d. cash flows from operations.
e. redeeming marketable securities.