Chap 13

The traditional and principal source of bank funds is deposits.

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

Accommodating banks buy and sell Federal funds simultaneously.

• True

• False

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.

• True

• False

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.

• True

• False

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.

• True

• False