the economics of money, banking, and financial markets

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17. 
    

    Which of the following are not reported as assets on a bank's balance sheet?
    A) Cash items in the process of collection
    B) Loans
    C) Securities
    D) Demand deposits
    Answer: D
    Diff: 1 Type: MC Page Ref: 296 - 297
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


18. 
    

    Through correspondent banking, large banks provide services to small banks, including
    ____.
    A) loan guarantees
    B) foreign exchange transactions
    C) issuing stock
    D) debt reduction
    Answer: B
    Diff: 2 Type: MC Page Ref: 296
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


19. 
    

    Which of the following bank assets is the most liquid?
    A) Consumer loans
    B) Reserves
    C) Cash items in process of collection
    D) Government securities
    Answer: B
    Diff: 1 Type: MC Page Ref: 296
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds

    
    


20. 
    

    Because of their ____ liquidity, ____ government securities are called secondary
    reserves.
    A) low; short-term
    B) low; long-term
    C) high; short-term
    D) high; long-term
    Answer: C
    Diff: 1 Type: MC Page Ref: 296
    Skill: Recall
    Objective List: 13.1 Outline a bank's sources and uses of funds