Banking_Mid-Term

Credit cards issued by banks is a form of lending.

• True

• False

Generally speaking, banks offer customers fewer services today than they did 20 years ago.

• True

• False

Which of the following is considered a liability for a bank?

• loans

• investments

• deposits

• banks can't carry liabilities

Which of the following is a nondepository intermediary?

• commercial bank

• insurance company

• savings and loan association

• credit union

Last year, First National Bank of Springfield paid $5.1 million in interest to depositors; it collected $7.8 million in interest from loans. Calculate the spread.

• $12.9 million

• $2.7 million

• $5.1 million

• $3.8 million

This month, costs for SafeCo Bank were $750,000; the bank collected $970,000 in revenue. Find the bank's profit for the month.

• Not enough information to calculate

• $970,000

• $1,720,000

• $220,000

What's left of revenue after costs are deducted

• asset

• equity

• profit

• spread

Anything of value

• asset

• equity

• profit

• spread

The difference between interest paid and interest received

• asset

• equity

• profit

• spread

Financial institutions that do not take or hold deposits

• depositor

• depository intermediary

• wholesale bank

• nondepository intermediary