Friday, October 10, 2014

Bank loans from the Federal Reserve are called ________ and represent a ________ of funds.

1) Bank loans from the Federal Reserve are called ________ and represent a ________ of funds.

A) discount loans; use

B) discount loans; source

C) fed funds; use

D) fed funds; source

2) Which of the following is not a source of borrowings for a bank?

A) Federal funds

B) Eurodollars

C) Transaction deposits

D) Discount loans

3) Bank capital is equal to ________ minus ________.

A) total assets; total liabilities

B) total liabilities; total assets

C) total assets; total reserves

D) total liabilities; total borrowings

4) Bank capital is listed on the ________ side of the bank\"s balance sheet because it represents a ________ of funds.

A) liability; use

B) liability; source

C) asset; use

D) asset; source

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