商业银行管理彼得S罗斯英文原书第8版 英语试题库Chap005.docx

商业银行管理彼得S罗斯英文原书第8版 英语试题库Chap005.docx

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商业银行管理彼得S罗斯英文原书第8版英语试题库Chap005

Chapter5

TheFinancialStatementsofBanksandTheirPrincipalCompetitors

FillintheBlankQuestions

1.Fedfundspurchasedisanexampleof_______________________alongwithEurodollarborrowings.

Answer:

nondepositborrowings

2.Theshorttermsecuritiesofthebank,includingT-Billsandcommercialpaper,areoftencalled__________________________becausetheyarethesecondlineofdefensetomeetdemandsforcash.

Answer:

secondaryreserves

3.__________________________isanoncashexpenseonthebank'sincomestatementwhichallowsthebanktoaccountforfuturebadloans.

Answer:

Provisionforloanlosses

4.__________________________isthedifferencebetweeninterestincomeandinterestexpensesforafinancialinstitution.

Answer:

Netinterestincome

5.__________________________aretheprimarylongtermliabilitiesofthebank.Theseliabilitiesarepaidonlyafterdepositshavebeenpaidintheeventofbankruptcy.

Answer:

Subordinatednotesanddebentures

6.A（n）__________________________iswherethefinancialinstitutionagreestoguaranteerepaymentofacustomer'sloanreceivedfromathirdparty.

Answer:

standbycreditagreement

7.A（n）__________________________isashorttermcollateralizedloan.ThecollateralthatisusedgenerallyconsistsofT-Bills.

Answer:

repurchaseagreement

8.A（n）__________________________isadepositaccountwhichpaysaninterestratecompetitivewithmoneymarketmutualfundsandwhichgenerallyhaslimitedcheckwritingability.

Answer:

moneymarketdepositaccount

9._____________________isthesumofalloutstandingIOU'sowedtothebankintheformofconsumer,realestate,commercialandagricultureloansaswellasothertypesofcreditextensions.

Answer:

grossloans

10.Afinancialinstitutionoftenrecordsthevalueofitsassetsandliabilitiesat_______________whichistheoriginalorhistoricalcostoftheasset.

Answer:

bookvalue

11.Theprincipaltypesof__________________________includefeeincome,incomefromfiduciaryactivitiesandserviceschargesondeposits.

Answer:

noninterestincome

12.The__________________________showstheamountofrevenuesreceivedandexpensesincurredoveraspecifictimeperiod.

Answer:

ReportofIncome（incomestatement）

13.The__________________________liststheassets,liabilitiesandequitycapitalheldbythebankonagivendate.

Answer:

ReportofCondition（balancesheet）

14.______________islabeled"AccountingforDerivativeInstrumentsandHedgingActivities."

Answer:

FASB133

15.________________labeled“AccountingforDerivativeInstrumentsandHedgingActivities”anditsrecentamendments,FASB138,aredesignedtomakederivativesmorepubliclyvisibleoncorporatefinancialstatements.

Answer:

FASB133

16.Under_____________banksmustaccountfortheexpectedlossofinterestincomeonnonperformingloanswhencalculatingtheirloan-lossprovision.

Answer:

FASB114

17.Temporarilybuyingandsellingsecuritiesbyasecuritiesfirminathinlytradedmarketsoastoinfluencethepriceisknownas_________________.

Answer:

paintingthetape

18.Theactivityofmanipulatingthefinancialstatementstoartificiallyenhancethebanksfinancialstrengthisknownas___________________.

Answer:

windowdressingor‘creativeaccounting’

19.isdirectandindirectinvestmentinrealestate.Thesearepropertiesobtainedforcompensationsfornonperformingloans.

Answer:

OtherRealEstateOwned（OREO）

20.consistsofinterestincomereceivedonloansfromcustomersthathasnotyetbeenearnedbythebankunderaccrualaccountingmethods.

Answer:

Unearneddiscountincome

21.canbeheldbyindividualsandnonprofitinstitutions,bearinterestandpermitdraftsfrombeingwrittenagainsttheaccounttopaythirdparties.

Answer:

Nowaccounts

22.Intheworldwidebankingsystem,representtransferabletimedepositsinavarietyofcurrenciesandareoftentheprincipalsourceofshorttermborrowsbybanks.

Answer:

EurocurrencyBorrowings

23.OnepartofarisesfromfeeschargedforATMandPOStransactions.

Answer:

OtherNoninterestIncome

24.Feesthatarisefromafinancialfirm’strustactivities,feesformanagingacorporations’interestanddividendpaymentsandfeesformanagingcorporateorindividualretirementplansareallincludedinthecategoryoffeesarisingfrom.

Answer:

fiduciaryactivities

25.Checkingaccountmaintenancefeesandoverdraftfeesareincludedinthenoninterestincomeaccountunder.

Answer:

servicechargesondepositaccounts

True/FalseQuestions

TF26.Onabank'sincomestatement（ReportofIncome）depositcostsarefinancialinputs.

Answer:

True

TF27.Loansandleasesarefinancialoutputsonafinancialinstitution'sbalancesheetorReportofCondition.

Answer:

True

TF28.Nondepositborrowingsareafinancialinputonabank'sbalancesheetorReportofCondition.

Answer:

True

TF29.Thecostofnondepositborrowingsisafinancialinputonabank'sincomestatementorReportofIncome.

Answer:

True

TF30.Securitiesincomeisafinancialoutputlistedonafinancialinstitution'sReportofCondition.

Answer:

False

TF31.Netloansonabank'sbalancesheetarederivedbydeductingtheallowanceforloanlossesandunearneddiscountsfromgrossloans.

Answer:

True

TF32.Whenaloanisclassifiedasnonperforminganyaccruedinterestrecordedonthebank'sbooks,butnotactuallyreceived,mustbedeductedfromabank'sloanrevenues.

Answer:

True

TF33.InU.S.banking,securitiesgainsaretreatedasordinaryincome.

Answer:

True

TF34.Mostbanksreportsecuritiesgainsasacomponentoftheirtotalnoninterestincome.

Answer:

False

TF35.Abankdisplayingtradingaccountsecuritiesonitsbalancesheetisservingasasecuritydealerandplanstosellthosesecuritiesbeforetheyreachmaturity.

Answer:

True

TF36.Badloansnormallydonotaffectabank'scurrentincome.

Answer:

True

TF37.Theexpensingofaworthlessloanusuallymustoccurintheyearthatloanbecomeworthless.

Answer:

True

TF38.RecoveriesonloanspreviouslychargedoffareaddedtotheProvisionforLoanLosses（PLL）accountonabank'sincomestatement.

Answer:

False

TF39.Loan-lossreservessetasidetocoveraparticularloanorloansexpectedtobeaproblemorpresentthebankwithabove-averageriskareknownasspecificreserves.

Answer:

True

TF40.U.S.banks（especiallythosewith$500millionormoreintotalassets）arerequiredtofilefinancialstatementsauditedbyanindependentpublicaccountantwiththeirprincipalfederalregulatoryagency.

Answer:

True

TF41.Off-balance-sheetitemsforabankarefeegeneratingtransactionswhicharenotrecordedontheirbalancesheet.

Answer:

True

TF42.Theexperiencemethodofaccountingforfutureloanlossreservesallowsabanktodeductfromtheirincomestatementupto.6percentoftheireligibleloans.

Answer:

False

TF43.AftertheTaxReformActof1986,largebanks（>$500millioninassets）wererequiredtousethereservemethodofaccountingforfutureloanlossreserves.

Answer:

False

TF44.Thenumberonesourceofrevenueforabankbasedondollarvolumeisloanincome.

Answer:

True

TF45.Inlookingatcomparativebalancesheets,itcanbeseenthatlargebanksrelymoreheavilyonnondepositborrowingswhilesmallbanksrelymoreheavilyondeposits.

Answer:

True

TF46.ThePensionFundindustryisnowlargerthantheMutualFundindustry.

Answer:

False

TF47.Off-balance-sheetitemsforbankshavedeclinedinrecentyears.

Answer:

False

TF48.Exceptforbanks,Savings&LoansandSavingsBanksholdthemostdeposits.

Answer:

True

TF49."Paintingthetape"referstothepracticewherebybanksunderstatetheirnonperformingloans.

Answer:

False

TF50.Financialstatementsissuedbybanksandnonblankfinancialservicefirmsarelookingincreasinglysimilartoday.

Answer:

True

MultipleChoiceQuestions

51.Bankassetsfallintoeachofthefollowingcategoriesexcept:

A）Loans.

B）Investmentsecurities.

C）Demanddeposits.

D）Noninterestcashandduefrombanks.

E）Otherassets.

Answer:

C

52.Banksgeneratetheirlargestportionofincomefrom:

A）Loans.

B）Short-terminvestment.

C）Demanddeposits.

D）Long-terminvestments.

E）Certificatesofdeposit.

Answer:

A

53.Loanstypicallyfallintoeachofthefollowingcategoriesexcept:

A）Realestate.

B）Consumer.

C）CommercialandIndustrial（business）.

D）Agricultural.

E）Municipal.

Answer:

E

54.Whichofthefollowingadjustmentsaremadetogrossloansandleasestoobtainnetloansandleases?

A）Theloanandleaselossallowanceissubtractedfromgrossloans

B）Unearnedincomeissubtractedfromgrossinterestreceived

C）Investmentincomeisaddedtogrossinterestreceived

D）AandB.

E）A.andC.

Answer:

D

55.Anexampleofacontra-assetaccountis:

A）Theloanandleaselossallowance.

B）Unearnedincome.

C）Buildingsandequipment.

D）Revenuebonds.

E）Theprovisionforloanloss.

Answer:

A

56.Thenoncashexpenseitemonabank'sReportofIncomedesignedtoshelterabank'scurrentearningsfromtaxesandtohelpprepareforbadloansiscalled:

A）Short-termdebtinterest

B）Noninterestexpense

C）Provisionfortaxes

D）Provisionforpossibleloanlosses

E）Noneoftheabove.

Answer:

D

57.Afinancialinstitution'sbad-debtreserve,asreportedonitsbalancesheet,iscalled:

A）Unearnedincomeordiscount