Question 1

_________________________ are the net earnings of a bank,which have been kept by the bank rather than being distributed as dividends to stockholders.

Accepted Answer

Undivided profits (or retained earnings)

Question 2

Supplemental capital such as the allowance for loan and lease losses,subordinated debt capital instruments,mandatory convertible debt,intermediate-term preferred stock,cumulative perpetual preferred stock with unpaid dividends,and equity notes and other long-term capital instruments that combine both debt and equity features is more commonly known as ________________________.

Accepted Answer

Tier 2 capital

Question 3

__________________ is the amount in excess of stock's par value paid by the bank's shareholders.

Accepted Answer

Surplus

Question 4

The risk that has to do with banks trading in foreign currencies is called ________________________.

Accepted Answer

The answer of The risk that has to do with...

Question 5

_________________________ is measured by the par value of the shares of common equity outstanding.

Accepted Answer

The answer of _________________________ is measured by the par value...

Question 6

The latest revision to the Basel accord is known as __________ and will cover capital,liquidity,and debt positions of individual international banks and also the much broader issues associated with controlling global business cycles and financial system-wide risks.

Accepted Answer

The answer of The latest revision to the Basel accord...

Question 7

The risk that has to do with fraud,embezzlement and bank robberies is called _________________.

Accepted Answer

The answer of The risk that has to do with...

Question 8

At the center of the debate of the Basel Agreement is the ____________,headquartered in Basel,Switzerland,which assists central banks in their transactions with each other and serves as a forum for international financial issues.

Accepted Answer

The answer of At the center of the debate of...

Question 9

Core capital such as common stock and surplus,undivided profits,qualifying noncumulative perpetual preferred stock,etc.is referred to as __________________ capital,as defined by the Basel agreement.

Accepted Answer

The answer of Core capital such as common stock and...

Question 10

The largest component of capital among commercial banks is ___________.

Accepted Answer

The answer of The largest component of capital among commercial...

Question 11

One defense against risk for a bank is to seek out customers located in different communities or in different countries.This defense is known as ________________________.

Accepted Answer

The answer of One defense against risk for a bank...

Question 12

When all else fails,the ultimate defense against risk in banking is ________________________.

Accepted Answer

The answer of When all else fails,the ultimate defense against...

Question 13

_________________ risk measures are being developed to be used when Basel III takes effect.

Accepted Answer

The answer of _________________ risk measures are being developed to...

Question 14

____________ models measure a lender's exposure to defaults or credit downgrades.

Accepted Answer

The answer of ____________ models measure a lender's exposure to...

Question 15

____________ models attempt to measure price or market risk of a portfolio of assets and attempt to determine the maximum loss they might sustain over a designated period of time.

Accepted Answer

The answer of ____________ models attempt to measure price or...

Question 16

The largest component of capital among thrift institutions is ____________.

Accepted Answer

The answer of The largest component of capital among thrift...

Question 17

When the assets items on a bank's balance sheet and each off-balance-sheet commitment it has made are multiplied by the appropriate risk-weighting factor,they are often called ________________________.

Accepted Answer

The answer of When the assets items on a bank's...

Question 18

The international treaty involving representatives from the U.S.and 12 other leading industrialized countries to impose common capital requirements on all banks is known as the ________________________.

Accepted Answer

The answer of The international treaty involving representatives from the...

Question 19

The fact that a bank may suffer deficiencies in quality control,inefficiencies in producing and delivering of services,natural disasters,terrorist acts,weather damage,aging or faulty computer systems,errors in judgment by management,and fluctuations in economy that could adversely affect the bank's performance,is known as _________________________ risk.

Accepted Answer

The answer of The fact that a bank may suffer...

Question 20

One defense against risk for a bank is to spread out its credit accounts and deposits among a wide variety of customers,including large and small business accounts,different industries,etc.This defense is known as ________________________.

Accepted Answer