Increased compliance and regulatory requirements have no impact on a Bank's noninterest expense (operating expenses). Group of answer choices True False
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Increased compliance and regulatory requirements have no impact on a Bank's noninterest expense (operating expenses).
Group of answer choices
True
False
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- Which type of information asymmetry explains why bad credit risks are more likely to seek bank loans? A. Moral hazard B. Adverse selection C. Principal-agent problemTiming difference occurs when the bank records an amount before the company does. Group of answer choices True FalseMatch definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerb. ___________________occurs when management prepares misleading financial statements
- What necessary steps should be taken by the bank if they classify an account as unsatisfactory?multiple choice question a.The difference between the bank statement balance and the balance in Bank account in the general ledger may be due to: unpresented payments. outstanding receipts. errors done by the bank and the entity. all of the choices given.TRUE OR FALSE?Material overdraft in one bank must be deducted from the another bank's account that has a debit balance.
- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerj. Investments such as time deposits and certificates of deposit are . __________________Which of the following is a reason that banks may favor fee compensation over balance compensation? Balance compensation is not as visible as fees for budgeting purposes. The strategy involves attracting deposits to fund their loans. Earning credits used to determine the value of collected balances are taxable. Deposit balances increase liabilities on the balance sheet.A. Apart from the information arising from your analysis what other information would you advise the bank to consider when making its decision?
- Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasurerh. The _____________________is typically responsible for cash handling and cash management.Match definitions with vocabulary terms) Use theseterms to complete the statements that follow. You can use a term more than once or not at all.Bank reconciliation Firewall Misappropriation of assetsCash equivalents Fraud triangle Outstanding checkController Fraudulent financial reporting PhishingDeposits in transit Imprest system Remittance adviceFidelity bond Internal control Treasureri. A/An_______________ is prepared to explain the difference between the cash on the booksversus the bank cash balance.Select all that are true regarding liquidity risk for a bank. Consumer trust in the bank ensures a flow of funds from customers, reducing this risk. O A reduced access to credit markets reduces the bank's liquidity risk. Higher liquidity risk is a result of lower borrowing costs to the bank. O The flow of funds form the bank's clearing of payments reduces this risk. | This risk creates an opportunity cost which could result in a hole in the risk management strategy of the bank. O An increase in the bank's credit rating will help to reduce their liquidity risk.
