商业银行管理彼得S罗斯英文原书第8版英语试题库.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
Chapter11
LiquidityandReservesManagement:
StrategiesandPolicies
FillintheBlankQuestions
1.A(n)__________________isanassetwhichcanbeconvertedintocasheasily,whichhasarelativelystablepriceandisreversiblesothatthesellercanrecovertheiroriginalinvestmentwithlittleriskofloss.
Answer:
liquidasset
2.Whenafinancialinstitutionsellsassetstomanageliquidityitfaces_________________________.Theylosethefutureearningsonthoseassets,theyfacetransactioncostsonthosesalesandtheassetsmosteasilysoldoftenhavethelowestreturn.
Answer:
opportunitycosts
3._________________________iswhenthefinancialinstitutionborrowsmoneyinthemoneymarkettomeettheirliquidityneeds.
Answer:
Purchased(borrowed)liquidity
4.The_________________________isthetotaldifferencebetweenitssourcesandusesoffunds.
Answer:
liquiditygap
5._________________________arethedepositsandotherborrowingsofthebankwhichareveryinterestsensitiveorwherethebankissuretheywillbewithdrawnduringthecurrentperiod.
Answer:
"Hotmoney"liabilities
6.The_________________________istheideathatmanagementshouldmakeallgoodloansandcountonitsabilitytoborrowfundsifitdoesnothavetheliquiditytomeetitscashneeds.
Answer:
customerrelationshipdoctrine
7._________________________aretheassetsthebankmustbylawholdbehinditsdeposits.IntheU.S.onlyvaultcashanddepositsheldwiththeFederalReservescanbeusedtomeettheserequirements.
Answer:
Legalreserves
8.A(n)_________________________istheaccountthebankmusthaveattheFederalReservetocoveranychecksdrawnagainstthebank.
Answer:
clearingbalance
9.A(n)_________________________isaservicedevelopedbybankswherethebankshiftsmoneyoutofaccountswithreserverequirementsandintosavingsaccountsovernight.
Answer:
sweepsaccount
10.The_________________________isa14dayperiodstretchingfromaThursdaytoaWednesday.Thisistheperiodinwhichthebankhastokeeptheiraveragedailylevelofrequiredreservesforaparticularcomputationperiod.
Answer:
reservemaintenanceperiod
11._________________________istheavailabilityofcashintheamountneededatareasonablecost.
Answer:
Liquidity
12.Theoldestapproachtomeetingliquidityneedswhichreliesonthesaleofliquidassetstomeetliquiditydemandsiscalled_________________________.
Answer:
assetliquiditymanagement
13.Undera_________________________strategysomeoftheexpecteddemandsforliquidityarestoredinassets,whileothersarebackstoppedbyarrangementsforlinesofcreditfrombanksorothersuppliersoffunds.
Answer:
balancedliquiditymanagement
14.A(n)_________________________isthepersoninthebankresponsibleforthebank'scashpositionandmeetinglegalreserverequirements.
Answer:
moneypositionmanager
15.ThemethodusedintheU.S.todetermineabank'slegalreserverequirementinwhichtheperiodforholdinglegalreservesfollowstheperiodusedtocalculatetherequiredamountoflegalreservesiscalled_________________________.
Answer:
laggedreserveaccounting
16.Thefedfundsrateisgenerallymostvolatileonbank__________day.
Answer:
settlement
17.Manydepositoryinstitutionshold__________balances(extrareserves)tohelppreventoverdraftpenalties.
Answer:
precautionary
18.Notall_______banksaroundtheworldhavereserverequirements.
Answer:
central
19.Forseveraldecades,thelargestbanksaroundtheworldhavechosenwhichcallsforborrowingimmediatelyspendablefundstocoverallanticipateddemandsforliquidity.
Answer:
liabilitymanagement
20.Theapproachtomanagingliquiditystartswithtwosimplefacts,liquidityrisesasdepositsincreaseandloansdecreaseandliquidityfallswhendepositsfallandloansincrease.
Answer:
sourcesandusesoffunds
21.Intheapproachtomanagingliquiditydepositsandothersourcesoffundsaredividedintocategoriesandthenliquiditymanagersmustsetasideliquidfundsaccordingtosomedesiredoperatingrule.
Answer:
structureoffunds
22.Manyfinancialserviceinstitutionsestimatetheirliquidityneedsbaseduponexperienceandindustryaverages.Thisapproachtomanagingliquidityiscalledtheapproach.
Answer:
liquidityindicator
23.Manyanalystsbelievethereisonlyonesoundmethodforassessingafinancialinstitution’sliquidityneeds.Thismethodcenterson.
Answer:
disciplineofthefinancialmarketplace(signalsfromthemarketplace)
24.ThefordepositsandotherreservableliabilitiesandforvaultcashholdingsisatwoweekperiodextendingfromTuesdaytoaMondaytwoweekslater.
Answer:
reservecomputationperiod
25.Iftotallegalreservesheldaregreaterthanrequiredreservesthebankhas.
Answer:
excessreserves
26.Iftotallegalreservesheldarelessthanrequiredreservesthebankhas.
Answer:
areservedeficit
27.Theiswhereamoneypositionmanagercancoveralargereservedeficitquickly.Itisusuallyoneofthecheapestplacestoborrowbutisalsofrequentlyvolatile.
Answer:
federalfundsmarket
28.Oneoftheratiosusedintheliquidityindicatorapproachtomanagingafinancialinstitution’sliquidityneedsis.Thisratioiscashandduefromdepositoryinstitutionsdividedbytotalassetswhereagreaterratioindicatesastrongerliquidityposition.
Answer:
cashpositionindicator
True/FalseQuestions
TF29.Liquidassetsmusthaveareasonablystablepricesothatthemarketisdeepenoughtoabsorbthesalewithoutasignificantlossofvalue.
Answer:
True
TF30.Assetliquiditymanagement(orassetconversion)involvesstoringliquidityinassets,suchasdepositsandjumboCDs.
Answer:
False
TF31.Assetliquiditymanagement(orassetconversion)involvesstoringliquidityinassets,suchascashandmarketablesecurities.
Answer:
True
TF32.Liquidassetsgenerallyhaveastablepricebutarenotnecessarilyreversible.
Answer:
False
TF33.Assetconversionisconsideredtobeacostlessapproachtoliquiditymanagement.
Answer:
False
TF34.Oneprincipleofsoundbankliquiditymanagementistobesuretosellfirstthoseassetswiththeleastprofitpotential.
Answer:
True
TF35.Borrowedliquidity(liability)managementislessriskyforafinancialinstitutionthanisassetconversion.
Answer:
False
TF36.Afinancialinstitution'sliquiditygaprepresentsthedifferencebetweenitssourcesandusesofliquidfunds.
Answer:
True
TF37.Abankexpectstoloseits"hotmoney"liabilities,accordingtothetextbook.
Answer:
True
TF38.Accordingtothecustomerrelationshipdoctrineabankshouldturndownanyloanrequestsforwhichitdoesnothaveenoughdepositsonhandbutshouldhelpitsborrowingcustomerobtainfundsfromsomeothersource(suchasbyissuingaletterofcredittobackstopthecustomer'sloanfromanotherlender).
Answer:
False
TF39.AU.S.bankcanrunuptoa5-percentdeficitinitslegalreserverequirementwithoutincurringaninterestpenaltyfromtheFederalReserveSystem.
Answer:
False
TF40.Mostliquidityproblemsinbankingarisefrominsideabank,notfromitscustomers.
Answer:
False
TF41.HoldingsofliquidassetsatU.S.bankshaveexperiencedagradualdeclineinrecentyears.
Answer:
True
TF42.TheFederalReservehasbeenloweringdepositreserverequirementsinrecentyears.
Answer:
True
TF43.Theliquidityindicator,coredepositsdividedbytotalassets,isameasureofstoredliquidity.
Answer:
False
TF44.Abank'smoneypositionmanagerisresponsibleforinsuringthatthebankmaintainsanadequateleveloflegalreserves.
Answer:
True
TF45.IfabankintheUnitedStatesrunsalegalreservedeficitofmorethan2percentofitsrequireddailyaveragelegalreservepositionitwillbeassessedaninterestpenaltyequaltotheFederalReserve'sdiscountrateplus5percent.
Answer:
False
TF46.Ifabankreceivesmorechecksdepositedtotheaccountsitholdsthanchecksdrawnagainstitsdepositaccounts,thebank'slegalreserveswilltendtoincrease.
Answer:
True
TF47.Accordingtothetextbookifabank'sliquiditydeficitisexpectedtolastforonlyafewhours,thefederalfundsmarketorthecentralbank'sdiscountwindowisnormallythepreferredsourceoffunds.
Answer:
True
TF48.Banksmakingheavyuseofborrowedsourcesofliquiditymustwrestlewiththeproblemofinterestcostuncertainty,accordingtothetextbook.
Answer:
True
TF49.Allcentralbanksimposereserverequirementsonthebankstheyregulate.
Answer:
False
TF50.Thesourcesandusesoffundsmethodofestimatingabank'sliquidityrequirementsdividesthebank'sliabilitiesintothreetypes(hotmoney,vulnerablefundsandstablefunds)andestimatestheprobabilityofeachbeingwithdrawnfromthebank.
Answer:
False
TF51.Oneoftheproblemswithliquiditymanagementforabankisthatrarelydoesthedemandforfundsequalthesupplyoffundsatagiventime.
Answer:
True
TF52.Oneoftheproblemswithliquiditymanagementforabankisthatthereisatrade-offbetweenbankliquidityandprofitability.
Answer:
True
TF53.Theliquidityproblemforbanksismadeeasierbecausemostoftheirliabilitiesarenotsubjecttoimmediaterepayment.
Answer:
False
TF54.Theliquidityproblemforbanksismadeeasierbecausedepositorsandborrowersarenotsensitivetochanginginterestrates.
Answer:
False
TF55.Theoldestapproachtoliquiditymanagementistheassetliquiditymanagementapproach.
Answer:
True
TF56.Somecentralbanksaroundtheworldimp