the economics of money, banking, and financial markets

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13. 
    

    Bank capital is listed on the ____ side of the bank's balance sheet because it represents a
    ____ of funds.
    A) liability; use
    B) liability; source
    C) asset; use
    D) asset; source
    Answer: B
    Diff: 1 Type: MC Page Ref: 294 - 295
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


14. 
    

    Bank reserves include ____.
    A) deposits at the Bank of Canada and short-term securities
    B) vault cash and short-term securities
    C) vault cash and deposits at the Bank of Canada
    D) deposits at other banks and deposits at the Bank of Canada
    Answer: C
    Diff: 1 Type: MC Page Ref: 296
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


15. 
    

    The fraction of chequable deposits that banks choose to hold are ____.
    A) excess reserves
    B) desired reserves
    C) vault cash
    D) total reserves
    Answer: B
    Diff: 1 Type: MC Page Ref: 296
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


16. 
    

    Which of the following are reported as assets on a bank's balance sheet?
    A) Borrowings
    B) Reserves
    C) Notice deposits
    D) Bank capital
    Answer: B
    Diff: 1 Type: MC Page Ref: 296 - 297
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds