Question 1

A(n)__________________________ is a deposit account which pays an interest rate competitive with money market mutual funds and which generally has limited check writing ability.

Accepted Answer

money market deposit account

Question 2

The principal types of __________________________ include fee income,income from fiduciary activities,and service charges on deposits.

Accepted Answer

noninterest income

Question 3

The activity of manipulating the financial statements to artificially enhance the banks financial strength is known as __________________.

Accepted Answer

"window dressing" or "creative accounting"

Question 4

A(n)__________________________ is where the financial institution agrees to guarantee repayment of a customer's loan,which the customer has received from a third party.

Accepted Answer

The answer of A(n)__________________________ is where the financial institution agrees...

Question 5

__________________________ are the primary long-term liabilities of the bank.

Accepted Answer

The answer of __________________________ are the primary long-term liabilities of...

Question 6

__________ can be held by individuals and nonprofit institutions,bear interest and permit drafts to be written against the account to pay third parties.

Accepted Answer

The answer of __________ can be held by individuals and...

Question 7

________________ is an asset category which includes direct and indirect investment in real estate.These are properties obtained for compensations for nonperforming loans.

Accepted Answer

The answer of ________________ is an asset category which includes...

Question 8

The short-term securities of the bank,including T-Bills and commercial paper,are often called __________________________ because they are the second line of defense to meet demands for cash.

Accepted Answer

The answer of The short-term securities of the bank,including T-Bills...

Question 9

The __________________________ shows the amount of revenues received and expenses incurred over a specific time period.

Accepted Answer

The answer of The __________________________ shows the amount of revenues...

Question 10

______________ is labeled "Accounting for Derivative Instruments and Hedging Activities".

Accepted Answer

The answer of ______________ is labeled "Accounting for Derivative Instruments...

Question 11

A(n)__________________________ is a short term collateralized loan.The collateral that is used generally consists of T-Bills.

Accepted Answer

The answer of A(n)__________________________ is a short term collateralized loan.The...

Question 12

__________ consists of interest income received on loans from customers that has not yet been earned by the bank under accrual accounting methods.

Accepted Answer

The answer of __________ consists of interest income received on...

Question 13

A financial institution often records the value of its assets and liabilities at ____________ which is the historical cost of the asset.

Accepted Answer

The answer of A financial institution often records the value...

Question 14

________________ labeled "Accounting for Derivative Instruments and Hedging Activities" and its recent amendments,__________,are designed to make derivatives more publicly visible on corporate financial statements.

Accepted Answer

The answer of ________________ labeled "Accounting for Derivative Instruments and...

Question 15

Temporarily buying and selling securities by a securities firm in a thinly traded market so as to influence the price is known as ________________.

Accepted Answer

The answer of Temporarily buying and selling securities by a...

Question 16

Fed funds purchased is an example of _______________________ along with Eurodollar borrowings.

Accepted Answer

The answer of Fed funds purchased is an example of...

Question 17

_____________________ is the sum of all outstanding IOUs owed to the bank in the form of consumer,real estate,commercial,and agriculture loans as well as other types of credit extensions.

Accepted Answer

The answer of _____________________ is the sum of all outstanding...

Question 18

__________________________ is a noncash expense on the bank's income statement which allows the bank to account for future bad loans.

Accepted Answer

The answer of __________________________ is a noncash expense on the...

Question 19

The __________________________ lists the assets,liabilities and equity capital held by the bank on a given date.

Accepted Answer

The answer of The __________________________ lists the assets,liabilities and equity...

Question 20

__________________________ is the difference between total interest income and total interest expenses for a financial institution.

Accepted Answer

The answer of __________________________ is the difference between total interest...

Quiz 5: The Financial Statements of Banks and Their Principal Competitors