The following are examples of Assets in the Balance Sheet of a Commercial Bank, EXCEPT: Bank Capital Required Reserves Securities Mortgages Rank,

The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets Reserves Loans Securities Fixed assets Total $3,000 34,000 8,500 4,500 50,000 Total $40,000 10,000 50,000 a. The Oilers Bank is over-reserved by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $

In principle, securitizations are useful because, they allow a bank to transfer the operational risk of liabilities to other banks. they allow banks to recover the principal of the securitized loans immediately. Both the above are correct. None of the above is correct.

How does the stock market fit in the concept of banking? Is it a bank? Or stocks a form of money?