NHTM - CHAPTER 13

The traditional and principal source of bank funds is deposits.

• FALSE

• TRUE

Asset management (i.e., conversion of assets to cash) is regarded as an interest-sensitive approach to raising  funds.

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Deposits have been growing faster than nondeposit sources of funds in recent years among U.S. banks.

• FALSE

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Federal funds today consist exclusively of deposits held at the Federal Reserve banks.

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There are no reserve requirements on Federal funds borrowings in the U.S.

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• FALSE

Accommodating banks buy and sell Federal funds simultaneously.

• FALSE

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Loans of Federal funds under a continuing contract are automatically renewed each day unless either the borrower or the lender decides to end the agreement.

• FALSE

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The loan from a Federal Reserve bank which normally lasts only a few days and is designed to provide immediate aid in meeting a bank's legal reserve requirement is known as extended credit.

• FALSE

• TRUE

Yankee CDs are issued by large savings and loan associations and other nonbank savings institutions.

• TRUE

• FALSE

The volume of variable-rate CDs exceeds the volume of fixed-rate CDs among U.S. banks.

• FALSE

• TRUE