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1. If your Total Liabilities are $5,000,000 and your Total Assets are $5,500,000, then your Capital...

1. If your Total Liabilities are $5,000,000 and your Total Assets are $5,500,000, then your Capital Ratio is :

2. The normal relationship anticipated for Non-Interest Revenue and Non-Interest Expense is:

Undetermined, since there is no history on which to base assumptions

Neutral, resulting in a Sum Zero Game (neither losses nor gains)

Negative, resulting in net expenses offsetting profit from net interest

Positive, resulting in additional profit.

4.

Subordinate notes and debentures are used as ___________ at ________:

a. primary capital; insurance companies        b. secondary capital; pension funds

c. depository sources; mutual funds               d. secondary capital; banks.

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