[[BM] Chap 5 - Rose

25. On a bank's income statement (Report of Income) deposit costs are financial inputs.

• True

• False

26. Loans and leases are financial outputs on a financial institution's balance sheet or Report of Condition.

• True

• False

27. Nondeposit borrowings are a financial input on a bank's balance sheet or Report of Condition

• True

• False

28. The cost of nondeposit borrowings is a financial input on a bank's income statement or Report of Income.

• True

• False

29. Securities income is a financial output listed on a financial institution's Report of Condition.

• True

• False

30. Net loans on a bank's balance sheet are derived by deducting the allowance for loan losses and unearned discounts from gross loans.

• True

• False

31. When a loan is classified as nonperforming, any accrued interest recorded on the books, but not actually received, must be deducted from the bank's loan revenues.

• True

• False

32. In U.S. banking, securities gains are treated as an ordinary income.

• True

• False

33. Most banks report securities gains as a component of their total noninterest income.

• True

• False

34. A bank displaying trading-account securities on its balance sheet is serving as a security dealer
and plans to sell those securities before they reach maturity.

• True

• False