FIN 434 Test #1

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  1. report of condition or call report
    BS; lists A, L, & E (owner's funds) held by or invested in the depository institution at any single point in time; shows amount & composition of fund sources (financial inputs) drawn upon to finance lending & investing activities; same for loans, securities, & other fund uses (financial outputs)
  2. report of income or operations
    indicates how much revenue has been received & what expenses have been incurred over (forming the profits/losses) a specific period of time; shows how much it cost to acquire funds & to generate revenues
  3. ROA
    measured by the ratio of NI to TA; indicator of managerial efficiency; a measure of overall operating efficiency
  4. ROE
    measured by the ratio of NI to Total Equity Capital; measure of the rate of return flowing to shareholders
  5. net interest margin
    measures how large a spread between int. revenues & int. costs mgmt has been able to achieve by close control over earnings assets & pursuit of the cheapest sources of funding
  6. net noninterest margin
    measures the amount of nonint. revenues from services fees the financial firm has been able to collect relative to the amount of nonint. costs incurred; typically is negative
  7. earnings spread
    measures the effectiveness of a financial firm's intermediation function in borrowing & lending money & also the intensity of competition in the firm's market area; greater competition=decline in this
  8. net profit margin
    the ratio of NI divided by total operating revenues; reflects effectiveness of exp. mgmt (cost control) & service pricing policies
  9. asset utilization
    the ratio of total operating revenues to TA, measuring the average yield on assets; reflects portfolio mgmt policies, especially the mix & yield on assets
  10. equity multiplier
    the ratio of TA to Total Equity Capital; reflects leverage or financing policies: the sources chosen to fund the financial institution (debt or equity)

Card Set Information

FIN 434 Test #1
2013-02-24 19:07:39
fin 434

Chapters 1,5,6, & first half of 2
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