When a bank a loan, it removes the loan from its balance sheet.
A) cashes in
B) buys
C) writes off
D) converts
Correct Answer:
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Q46: The most liquid form of assets on
Q47: The return on equity is:
A)the ratio of
Q48: Another name for default risk is risk.
A)liquidity
B)interest
Q49: The cost to a bank of holding
Q50: Overnight bank-to-bank loans are called:
A)certificates of deposit.
B)federal
Q52: To find a bank's return on its
Q53: Which of the following is the "cheapest"
Q54: Requiring collateral reduces the probability of default
Q55: Banks face considerable risk.
A)insolvency
B)interest rate
C)credit
D)insolvency, interest rate,
Q56: On a bank's balance sheet, which of
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