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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
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
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
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