Chương 5

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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

• T

• F

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.

• T

• F