From the perspective of a bank, a deposit is a (or an) Select one: a. part of capitalization b. asset c. liability
Form the perspective of the banks the deposits are part of liability as that has to be paid by the banks in the coming future. The answer is "C".
From the perspective of a bank, a deposit is a (or an) Select one: a. part...
When preparing a bank deposit which of the following is a best practice? Select one: a. Group all customer payments with the same payment method together in one deposit b. Group customer payments with the payment method of checks and credit card payments in one deposit and group all the cash payment methods in a separate deposit c. Deposit all customer payments one at a time using the Bank Deposit form d. Leave payments in the undeposited funds account To...
3.When an employee has chosen to deposit paycheques directly to his/her bank account – Select one: a. you cannot enter the paycheque in the payroll cheque run journal b. you can click direct deposit in the journal to issue a regular cheque c. you cannot issue a cheque directly to the employee unless you change the employee ledger settings d. you must add the bank account number to the payroll journal for the employee 4.Which of the following are not...
When Bank A borrows federal funds from Bank B, the Federal Reserve bank increases one of the banks' accounts on the asset side of the Fed's balance sheet. b) Bank A posts an increase in its asset account, federal funds sold. c) Bank B posts an increase in its asset account, federal funds sold. the Federal Reserve bank increases the deposit account of both Bank A and Bank B. 24) Which of the following is not one of the five...
Using IFE, assume that the interest rate on a one-year insured home country bank deposit is 6%, and the interest rate on a 1-year insured foreign bank deposit is 8%. For the actual returns of these two investments to be similar from the perspective of investors in the home country, the foreign currency would have to change over the investment horizon by the following percentage:
Student Name: Q1. (15 points) Bank Profits: Bank A has deposit liabilities of $200 million. It keeps the minimum cash reserves required by law of 20 % and holds an additional 10% of minimum cash reserves. Now the lending- borrowing transactions are taking place and the funds lent out from one bank are returned to the banking system in the form of new deposits to another bank. For example, Bank A keeps its minimum required reserves and lends the excess...
3. Using IFE, assume that the interest rate on a one-year insured home country bank deposit is 6%, and the interest rate on a 1-year insured foreign bank deposit is 8%. For the actual returns of these two investments to be similar from the perspective of investors in the home country, the foreign currency would have to change over the investment horizon by the following percentage:
Question 4 20 pts A company approaches a bank and wants to deposit $7m from the bank starting in 175 days for 90 days. The bank sees the current market information as • 175 day continuously compounded rate is 3.8671%. • There is a Eurodollar futures contract expiring in 175 days with a price of 96.3491. The bank sets their deposit rate at 0.3% below fair. At what rate does the bank set its rate? % (solve to 4 decimal...
27) Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as an) for the borrowing bank and a(n) for the lending bank. A) asset; asset B) asset; liability C) liability; liability D) liability; asset 28) An expectation may fail to be rational if A) relevant information was not available at the time the forecast is made. B) relevant information is available but...
To meet its reserve requirements, a bank may count as reserves: Select one: a. the value of its buildings b. its vault cash c. its deposit with the Fed d. Both b. and c. above
Assume that Bank One receives a primary deposit of $200,000. The bank must keep 20% against its deposits. What is the maximum deposit expansion?