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© 2014 Pearson Canada Inc.$Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 13 Banking and the Management of Financial Institutions
13.1 The Bank Balance Sheet
Which of the following statements are true?
A) A bank's assets are its sources of funds.
B) A bank's liabilities are its uses of funds.
C) A bank's balance sheet shows that total assets equal total liabilities plus capital.
D) A bank's balance sheet indicates whether or not the bank is profitable.
Answer: C
Diff: 1 Type: MC Page Ref: 294
Skill: Recall
Objective List: 13.1 Outline a bank's sources and uses of funds
Which of the following statements is false?
A) A bank's assets are its uses of funds.
B) A bank issues liabilities to acquire funds.
C) The bank's assets provide the bank with income.
D) Bank capital is recorded as an asset on the bank balance sheet.
Answer: D
Diff: 1 Type: MC Page Ref: 294
Skill: Recall
Objective List: 13.1 Outline a bank's sources and uses of funds
Which of the following are reported as liabilities on a bank's balance sheet?
A) Reserves
B) Demand and notice deposits
C) Loans
D) Deposits with other banks
Answer: B
Diff: 1 Type: MC Page Ref: 294
Skill: Recall
Objective List: 13.1 Outline a bank's sources and uses of funds
Which of the following are reported as liabilities on a bank's balance sheet?
A) Advances
B) Reserves
C) Securities
D) Loans
Answer: A
Diff: 1 Type: MC Page Ref: 294
Skill: Recall
Objective List: 13.1 Outline a bank's sources and uses of funds