Some financial institutions are classified as depository institutions based on:a. the way they acquire funds.PO b. the size of the loans they make.c. the number of customers they have.O d. the number of loans they make.e. the amount of reserves they hold.

Financial institutions: - Financial institutions are the companies that indulge in providing…

Some financial institutions are classified as depository institutions based on: a. the way they acquire funds. b. the size of the loans they make. O c. the number of customers they have. d. the number of loans they make. O e. the amount of reserves they hold.

Some financial institutions are classified as depository institutions based on: a. the way they acquire funds. b. the size of the loans they make. O c. the number of customers they have. d. the number of loans they make. O e. the amount of reserves they hold.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In pass through certificate payments comes through O a. Underlying loans O b. Underlying…

A: When talking about assets, there are different types of assets exchanged in the market based on…

Q: Which of the following statement is correct? i. Commercial bank is a Banking Financial Institution…

A: Commercial banks and insurance companies are both institutions that deal with finance, however, the…

Q: Let's say that you have put $1,000 in your savings account at a local financial institution, and an…

A: The banks which deals with public(Known as commercial banks) are the financial institution whose…

Q: Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underline word if the…

A: In a market, lending and collecting money refers to the exchange of money among the people when…

Q: Assets Liabilities Reserves $3000 Deposits $22,000 Loans $20,000 Debt $2000 Securities $5,000…

A: Given information - Reserve requirement = 10% Deposits = $22,000 According to the given information…

Q: Which of the following is the MOST liquid of the assets? a.M1 b.Cryptocurrencies c.M2…

A: The liquidity of assets indicates the time taken by an assets to convert in the cash. If an asset…

Q: Who are the end-users of banking? O a. Borrowers and government O b. Government and management O c.…

A: A saving account is the deposit account offered by baking institutes or other financial institutes…

Q: use the term Commercial Banks to answer the question below Explain the purpose of this type of…

A: A bank is an institution in which an individual or consumer deposit their extra or ideal cash and is…

Q: Identify a difference between fiat currencies and cryptocurrencies. O Unlike cryptocurrencies, fiat…

A: In order to exchange it for goods and services, currency must be something that is commonly…

Q: 5. Financial institutions in the United States Which of the following are financial intermediaries?…

A: Financial Intermediaries are the institutions that act as mediators connecting lenders with the…

Q: Question 13 Which of the following will yield to a bank the lowest return? O Short term loans with…

A: Question 13) The loans with little risk yields the low returns because the returns were directly…

Q: Discuss the difficulties that Money Laundering, Terrorism Financing and/orProliferation Financing…

A: Key references: Davis, P. J. (2019). To return the funds at all: global anticorruption, forfeiture,…

Q: Which of these assets is considered liquid asset? a. Fire insurance b. Accounts receivable c.…

A: Liquid asset refers to the assets that can be converted into cash easily by retaining the market…

Q: Discuss the importance of Financial System.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which financial institutions are usually excluded from the definition of bank? Choose all that…

A: b. I and IV only.Credit union (I): Excluded.Mutual fund companies (IV): Excluded.This option is…

Q: In which way do commercial bank earn profit? By printing notes By charging more to lend money than…

A: A bank charges more interest on money lent and gives less interest on money borrowed. In this way a…

Q: What is a lender of last resort? An institution, typically a financial institution, that can provide…

A: Concept of Lender of Last resort is related to central bank of a country. The central bank of a…

Q: Administration costs make small loans less profitable for banks than large ones, other things equal.…

A: Answer: The exact amount of administrative costs is the same for small loans as well as large loans.…

Q: The Federal Reserve is offering Treasury bills with a par value of $10 billion for sale. They have…

Q: The figures in the table below are for a single commercial bank. All figures are in thousands of…

A: Reserves are the part of deposit kept aside by the banks as per the rules of commercial bank.…

Q: If you make a late payment on a 0% interest credit card, you're responsible for paying the entire…

A: The statement is false If we make late payment on a 0% interest card , then the bank may charge…

Q: Which of the following is not a category of bank regulations? a. Capital requirements. b. Free…

A: Banks are the autonomous institutions that set various rules and regulations to regulate the money…

Q: A bank's assets include its and a bank's liabilities include its

A: In the T account or asset and liability account bank record it's asset and liability.

Q: Rank the following assets from most liquid to least liquid: a. Chequing account deposits b. Houses…

A: Most liquid assets are those that can be easily coverted in to cash. These assets can be converted…

Q: Which of the following statements is true? a. A bank’s assets are its uses of funds b. A…

A: A bank is an entity that acts as a financial intermediary to provide loans to investors and accept…

Q: Discuss the difficulties that Money Laundering, Terrorism Financing and/orProliferation Financing…

A: Approach to Solving the Question:Introduction: In the first step, it is necessary to discuss the…

Q: Historically, which of the following was correct about banks in America ? A. most banks were small…

A: In America, the first bank was established in 1791. Even though it was a small bank, it was willing…

Q: Dollar bills, rare paintings, and emerald necklaces are all

A: All the features of money will not present in other valuable items.

Q: Cat bank has deposits of $800 million. It holds reserves of $20 million and government bonds worth…

A: Total Assets: Total assets represent the sum of all the valuable resources owned or controlled by an…

Q: 05 A bank that has assets of $60 billion and a net worth of $20 billion must have Mc Sraw Hill…

A: Given information: Assets = $60 Billion Net Worth (or Equity) = $20 Billion Solution: We know…

Q: Which of the following is NOT TRUE about Insurance companies? * a. They are non-depository…

A: When product or a particular service is manufactured, cost takes place and process of business…

Q: What is the difference between a debit/ATM card and a credit card? With a debit/ATM card you are…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Which of the following statement/(s) is/are false-Statement I: Savings deposit do not have…

A: Statement I Current account is operated by a corporate entity. A corporate entity has a number of…

Q: What does your credit score tell a banker? O exactly how you will behave in the future the color of…

A: The credit score is a score calculated using statistical analytical methods. It is used by financial…

Q: Liabilities and Net Assets Horth Stock Shares $400 Reserves Property Securities Loans Denand…

A: Liabilities of bank: The liabilites incorporate the sum that the bank owes to other people. This by…

Q: Banks that are too-big-to-fail refers to: a. Banks with multiple branches and a large number of…

A: The primary function of financial regulators is to prevent systematic risk and avoid financial…

Q: If the value of a bank's assets exceeds the value of its liabilities, the bank is O liquid O iliquid…

A: Assets refer to the resources owned by a bank . Liabilities are the debts that bank owes and it has…

Q: Which of the following is money?

A: Introduction "What is money?" has been one of the important debates in mainstream economic theory .…

Q: Administration costs make small loans less profitable for banks than large ones, other things equal.…

A: Loan is the amount of money offered by Banking as well as non banking financial institution in…

Q: What is bank,types of banks ,functions of bank and how banks perform their functions & explain…

A: Banks financial institutions that manage the financial operations in the country through saving,…

Q: that has assets of $90, short-term credit of $70, and capital of $20. Short-term credit must be…

A: Assets are considered something that the bank actually owns.Liabilities is something that the bank…

Q: Savings Institutions? * a. They bridge the gap between the providers of funds and the demander of…

A: Answer in step 2

Q: A financial firm that takes deposits from households and firms is Select one: O A. a central bank.…

A: A financial firm that takes deposits from households and firm is Select one A. A central bankB. A…

Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

100%

Some financial institutions are classified as depository institutions based on:
a. the way they acquire funds.
PO b. the size of the loans they make.
c. the number of customers they have.
O d. the number of loans they make.
e. the amount of reserves they hold.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Question 22 The functions of depository institutions include O maximizing M1 and M2 O pooling risk O providing debt counselling O providing credit ratings
1
1. What is the primary social function of the financial system? a. To direct financial capital to its highest and best use b. To maximize shareholder returns c. To maintain a steady stream of financial innovations d. To find unexploited profit opportunities 2. What is the primary challenge of a barter economy? Successful transactions require transporting and distributing goods from one location to another b. Successful transactions require consumers to gather information on a variety of goods and services and pick a combination that maximizes consumer utility c. Successful transactions require producers to manage a complex set of inputs d. Successful transactions require the realization of a double coincidence of wants 3. Technically, money is a. The base good for which all other goods and services are traded b. The commodity of greatest value in a society c. Always a fiat currency d. The object of production
What is the role of a commercial bank? O a. To create money through the banking system O b. To maximize profits for its shareholders O c. To take customers' deposits and make loans O d. All of the answers are correct
65
Free rider problem is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for Banks reduce the free-rider problem in information production by A making private, nontraded loans so other lenders cannot benefit from the information they have collected about the borrower B. charging others for information about the financial condition of potential borrowers C. buying tradable securities with their depositors' funds D. serving as an intermediary that holds scarcely any nontraded loans
Which of the following is considered a liability to a bank? Lütfen birini seçin: O A. the bank's loans O B. government securities O C. reserves O D. the bank's buildings and equipment O E. demand deposits
Please no written by hand Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank’s Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and ? the ? account. This would also bring the leverage ratio from its initial value ? of to a new value of ? . Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The total value of liabilities The riskiness of each asset The size of the monetary base
In the originate-to-distribute model of banking, banks sell loans soon after they make them and use proceeds from the sale to make new loans. a. True O b. False
Economics
Question 13 Select the correct statement: Your interest rate on your loan with the credit card company can go up big O A. time if you make late payments, or go over your credit limit. Your interest rates on your loan with many credit card companies can go up O B. big time if you make late payments on other bills that have nothing to do with your credit card. Your interest rate on your loan with many credit card companies can go up C. big time for no reason at all. O D. All of the above. Question 14 Save and Quit s a really tough question. Select the correct statement: DELL 24 &
All of the following are examples of savings vehicles EXCEPT O Savings account O Money Market Account O CD's O Putting money in a safety deposit box under your bed.