Commercial Bank 3

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Author:
brandiobrad
ID:
37496
Filename:
Commercial Bank 3
Updated:
2010-09-26 17:56:13
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Commercial Bank
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Commercial Bank 3
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  1. Banks generate their largeset portion of income from:
    Loans
  2. Do loans fall into a category of Munis?
    No
  3. What kind of account is the Reserve for loand lease losses?
    Contra-Asset Account
  4. A financial institution's bad-debt reserve as reported on its balance sheet is called:
    The Reserve for Loan and Lease Losses
  5. Noncash expense item on a bank's Report of Income designed to shelter a bank's current earnings from taxes and to help prepare for bad loans is called:
    Provision for possible loan losses
  6. When a bank serves as a security dealer for certain kinds of securities the value of these are usually recorded in what account on a bank's report of condition?
    Trading Account Securities
  7. What is the difference between noninterest income and noninterest expenses on a bank's report of income called:
    net noninterest income
  8. The account that is built up by annual noncash expense deductions and is subtracted from Gross Loans on the Report of Condition is:
    Reserve for Loan and Lease Losses
  9. One time only transactions that often involve financial assets or real property pledged as collateral behind a loan and upon which the bank has foreclosed affect a bank's account known as:
    Nonrecurring sales of assets
  10. The use of fixed assets, rather than financial, in order to increase earnings flowing to a bank's stockholders is known as:
    Operating Leverage
  11. Banks depend heavily upon borrowed funds supplied by customers with little owners' capital invested. This means that banks make heavy use of:
    Financial Leverage
  12. When a loan is considered uncollectible, the bank's accounting department will write it off the books by reducing which accounts?
    ALL & Gross Loans
  13. Common banking practice of selling those investment securities that have appreciated in order to reap a capital gain and holding onto those securities whose prices have declined is known as:
    Gains Trading
  14. Noninterest revenue sources for a bank are called:
    Fee Income
  15. Which asset is the largest on a bank's balance sheet?
    Loans
  16. What financial service industry category is second to the banking industry in total assets held?
    Mutual Funds
  17. Which financial statement shows the revenues and expense of a bank over a set period of time?
    Report of Income
  18. FASB Rule 115 focuses primarily on bank:
    Investments in marketablle securities
  19. What is another name for undivided profits?
    Retained Earnings

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