WorksheetsFO - 2
Total questions: 15
Worksheet time: 15mins
Which of the following statements are true?
A bank’s assets are its sources of funds.
A bank’s liabilities are its uses of funds.
A bank’s balance sheet shows that total assets equal total liabilities plus equity capital
All of them are correct
Balance sheet of commercial bank shows that
Total assets equals total liabilities plus equity capital.
Lists sources and uses of bank funds
Indicates whether or not the bank is profitable
All of them are correct
Which of the following are reported as liabilities on a bank’s balance sheet?
Reserves at Central Bank
Loans to corporation
Checkable deposits
Deposits money at other banks
Which of the following are reported as liabilities on a bank’s balance sheet?
Saving deposits
Government bond
Discount loans from Central Bank
Building and machine
Which of the following is not an entity of the Federal Reserve System?
Federal Reserve Banks
The FDIC
The Board of Governors
The FOMC
Goal independence is:
the ability of the central bank to set monetary policy goals.
the ability of Congress to set monetary policy goals.
the ability of the president to set monetary policy instruments
the ability of Congress to set monetary policy instruments.
the ability of the central bank to set monetary policy instrument
Central bank's assets include:
Government securities.
Discount loans.
Currency in circulation.
Commercial bank's reserves
Reserves are equal to the sum of
required reserves and excess reserves.
required reserves and vault cash reserves.
excess reserves and vault cash reserves.
excess reserves and total reserves
The percentage of deposits that banks must hold in reserve in the
excess reserve ratio.
required reserve ratio
total reserve ratio
currency ratio
An increase in government securities held by the Central Bank leads to
easing monetary policy
tightening monetary policy
By making discount loans, the Central Bank provides reserves to the banking system. Do you agree?
Yes
No
By making discount loans, the Central Bank earns interest income. Do you agree?
Yes
No
By making discount loans, the Central Bank increases its assets. Do you agree?
Yes
No
An increase in discount loans by the Central Bank leads to
A decline in monetary supply
An increase in the monetary supply
When the Central Bank purchases a government bond in the open market
Reserves in the banking system increase.
Reserves in the banking system decline.
Central Bank's liabilities remain unchanged.
Central Bank's liabilities decrease.
