3 商业银行管理(罗斯)

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商业银行管理彼得S.罗斯英文原书第8版英语试题库Chap010

Chapter 10The Investment Function in Banking and Financial-Services ManagementFill in the Blank Questions1. A(n) _________________________ is a security issued by the federal government which has lessthan one year to maturity when it is issued.Answer: Treasury bill2. Debt instruments issued by cities, states and other political entities and which are exempt fromfederal taxes are collectively known as _________________________ .Answer: municipal securities3. The investment maturity strategy which calls for the bank to have one half of its investmentportfolio in very short term assets and one half of its investment portfolio in long term assets isknown as the _________________________ .Answer: barbell strategy4. A(n) _________________________ is a security where the interest portion of the security is soldseparately from the principal portion of the security.Answer: stripped security5. _________________________ are the way the federal, state and local governments guarantee thesafety of their deposits with banks.Answer: Pledging requirements6. The most aggressive investment maturity strategy calls for the bank to continually shift thematurities of its securities in responses to changes in interest rates and is called the__________________.Answer: rate expectation strategy7. _________________________ is the risk that the bank will have to sell part of its investmentportfolio before their maturity for a capital loss.Answer: Liquidity risk8. _________________________ is the risk that the economy of the market area they service maytake a down turn in the future.Answer: Business risk9. __________________ is the risk that the company whose bonds the financial institution owns mayretire the entire issue of corporate bonds in advance of their maturity leaving the bank with the risk of earnings losses resulting from reinvesting the cash at lower interest rates.Answer: Call risk10. A security issued by the federal government with 1 to 10 years to maturity when it is issued is calleda(n) _________________________ .Answer: Treasury note11. A short term debt security issued by major corporations is known as __________________.Answer: commercial paper12. The investment maturity strategy which calls for the bank to have all of their investment assets invery short term maturities is called the _________________________.Answer: front-end-loaded policy13. A money market security which represents a bank's commitment to pay a stipulated amount ofmoney on a specific future date under specific conditions and which is often used in international trade is known as a(n) _________________________.Answer: bankers' acceptance14. A(n) _________________________ is an interest-bearing receipt for the deposit of funds in a bankfor a stipulated time period. Ones that are oriented towards business customers or institutions are known as jumbos.Answer: certificate of deposit15. _________________________ are any securities which reach maturity in under one year.Answer: Money market securities16. _________________________ are any securities whose original maturity exceeds one year.Answer: Capital market securities17. Securities sold by Fannie Mae, Freddie Mac and others are known as_________________________.Answer: federal agency securities18. Claims against the expected income and principal generated by a pool of similar-type loans areknown as _________________________.Answer: securitized assets19. The long term debt obligations of major corporations are known as ________________________.Answer: corporate bonds20. The investment maturity strategy which calls for the bank to have all of their investment assets invery long term maturities is known as the _________________________.Answer: back-end-loaded policy21. Financial Institutions may invest in municipal bonds issued by smaller local governments. Thesebonds are known as ____________ bonds.Answer: bank qualified22.Marketable notes and bonds sold by agencies owned by the government or sponsored by thegovernment are known as .Answer: government agency securities23. A security issued by the federal government with greater than 10 years to maturity when it is issuedis called a(n) .Answer: Treasury Bond24.are time deposits of fixed maturity issued by the world’s larges banksheadquartered in financial centers around the globe. The heart of this market is centered in London.Answer: Eurocurrency deposits25. are a type of municipal bond that are backed by the full faith andcredit of the issuing government.Answer: General obligation bonds26. are a type of municipal bond that are paid only from certainstipulated source of funds.Answer: Revenue bonds27. are closely related to CMOs and partition the cash flow from a poolof mortgage loans or mortgage backed securities into multiple maturity classes in order to reduce the cash-flow uncertainty of investors.Answer: Real Estate Mortgage Investment Conduits (REMICs)28. is the risk that loans will be terminated or paid off ahead of schedule.This is a particular problem with residential home mortgages and other consumer loans that are pooled and used as collateral in securitized assets.Answer: Prepayment risk29. A lending institution that sells lower-yielding securities at a loss in order to reduce current taxableincome while simultaneously purchasing higher-yielding new securities in order to boost futurereturns is doing a(n) .Answer: tax swap30.A(n) is a picture of how market interest rates differ across loans securitiesof varying times to maturity.Answer: yield curveTrue/False QuestionsT F 31. Investments in securities provide diversification for a bank's assets because most loans come from the local areas served by a bank's offices.Answer: TrueT F 32. Bank income from loans is fully taxable.Answer: TrueT F 33. Investment securities are expected to "dress up" a bank's balance sheet, according to the textbook.Answer: TrueT F 34. Investment securities are expected to help stabilize a financial institutions's income.Answer: TrueT F 35. A short-term IOU offered by major corporations that is of short maturity (most of these lOUs mature in 90 days or less) is known as a CMO.Answer: FalseT F 36. Prepayment risk on securitized assets generally increases when interest rates rise.Answer: FalseT F 37. Stripping a security eliminates prepayment risk.Answer: FalseT F 38. According to the textbook the dominant security held in U.S. bank investment portfolios is state and local government bonds.Answer: FalseT F 39. Interest income and capital gains from a bank's portfolio of investment securities is taxed in the United States as ordinary income.Answer: TrueT F 40. Eurocurrency deposits that some banks purchase as investments generally carry higher market yields than domestic time deposits issued by comparable-size U.S. banks.Answer: TrueT F 41. Bankers' acceptances are considered to be among the safest of all money market instruments.Answer: TrueT F 42. An eligible acceptance is one that can be used as collateral for borrowing from a Federal Reserve bank.Answer: TrueT F 43. When a bank irrevocably guarantees a commercial paper issue, the bank's credit rating substitutes for the borrower's credit rating.Answer: TrueT F 44. The principal risk banks face from investing in structured notes is credit (default) risk.Answer: FalseT F 45. The principal risk to a financial institution buying CMOs is market risk.Answer: FalseT F 46. Stripped mortgage-backed securities fully protect investors from having to reinvest their income at lower and lower interest rates.Answer: FalseT F 47. Stripped mortgage-backed securities make maturity matching of bank assets and liabilities easier to accomplish than do most other investment securities that banks buy.Answer: FalseT F 48. Lower interest rates increase the present value of all projected cash flows from a loan-backed security so that its market value could rise.Answer: TrueT F 49. Treasury bills are the long term debt obligations issued by the federal government.Answer: FalseT F 50. Commercial paper is the short term debt instrument issued by major banks.Answer: FalseT F 51. Treasury notes and bonds are issued by the federal government and are coupon instruments.Answer: TrueT F 52. Interest rate risk is the risk financial institutions face due to changes in market interest rates.Answer: TrueT F 53. One investment maturity strategy popular among smaller institutions is the ladder or spaced maturity policy. It is popular because it does not take much expertise to implement.Answer: TrueT F 54. One investment maturity strategy, called the front end loaded policy, requires that the bank put all of its investment portfolio in long term securities.Answer: FalseT F 55. Business risk is the risk that the bank will experience a cash shortage and will have to sell some of its investments securities.Answer: FalseT F 56. Inflation risk is the possibility that the purchasing power of interest income and repaid principal from a security or loan will be eroded by rising prices for goods and services.Answer: TrueT F 57. Call risk refers to the right of debt collectors to call in the loans in advance of maturity and get an early repayment.Answer: FalseT F 58. If interest rates fall, a callable bond at par has the potential for large increases in price.Answer: FalseT F 59. The yield to maturity is the discount rate that equates a security’s purchase price with the stream of income expected until it is sold to another investor.Answer: FalseMultiple Choice Questions60.An important investment security popular with banks that must by law mature within one year fromthe date of issue and which has a high degree of safety and marketability is the:A) Treasury billB) Treasury noteC) FNMA noteD) Bankers' acceptanceE) Eurodollar CDAnswer: A61.A bank's promise to pay the holder a designated amount of money on a designated future date and isoften used in international trade is known as a (or an):A) Promissory guaranteeB) Discount securityC) Bankers' acceptanceD) In the money optionE) Accretion noteAnswer: C62.Pools of mortgages put together either by a government agency or by a private investment bankingcorporation to raise more loanable funds for the issuer are known as a (or an):A) Accretion bondB) Participation certificateC) CMOD) Stripped securityE) Commercial paperAnswer: C63.Fluctuations in the timing of cash payments flowing from an underlying pool of securitized assetsis referred to as:A) Income riskB) Prepayment riskC) Liquidity riskD) Capital riskE) None of the aboveAnswer: B64.Principal roles that a financial institution's investment portfolio play include which of thefollowing?A) Income stabilityB) Geographic diversificationC) Hedging interest rate riskD) Backup liquidityE) All of the aboveAnswer: E65._____________ is the method by which banks can provide a safeguard for the deposits ofgovernmental units.A) HedgingB) CollateralizationC) PledgingD) SecuritizationE) Window dressingAnswer: C66.The most aggressive investment maturity strategy that calls for the bank to continually shift thematurities of its securities in response to changes in interest rates and other economic conditions is theA) Barbell strategyB) Rate expectations approachC) Front-end-loaded policyD) Ladder approachE) None of the aboveAnswer: B67.Which of the following statements is (are) correct regarding duration?A) In comparing two bonds with the same yield to maturity and the same maturity, a bond with ahigher coupon rate will have a longer duration.B) In comparing two loans with the same maturity and the same interest rate, a fully amortizedloan will have a shorter duration than a loan with a balloon payment.C) The duration will always be shorter than the maturity for all debt instruments.D) All of the aboveE) B and CAnswer: B68.Which of the following is not one of the Capital Market instruments in which banks invest?A) U.S. Treasury notesB) Corporate notes and bondsC) U.S. Treasury bondsD) Municipal bondsE) Commercial paperAnswer: E69.Which of the following is true of Treasury bills?A)Interest on Treasury bills is exempt from state income taxes.B)Interest on Treasury bills is exempt from federal income taxes.C)Treasury bills pay a lower pretax yield than comparable corporate securities.D)All of the above are true.E) A and C onlyAnswer: E70.In recent years security dealers have assembled pools of federal agency securities whose principalinterest yield may be periodically reset based on what happens to a stated interest rate or may carry multiple coupon rates that are periodically adjusted; the foregoing describes a:A) Financial futures contractB) Revenue-anticipation noteC) Zero coupon instrumentD) Structured noteE) None of the aboveAnswer: D71.Banks are generally not allowed to invest in speculative grade bonds. What kind of risk is thisdesigned to limit?A) Liquidity riskB) Business riskC) Credit riskD) Tax exposureE) Interest rate riskAnswer: C72. A security where the interest payments and the principal payments are sold separately is called:A) A Treasury noteB) An accretionC) A structured noteD) A stripped securityE) None of the aboveAnswer: D73.Which of the following is true? Mortgage prepayment risk:A) Is higher on high interest rate mortgagesB) Is felt most dramatically when interest rates riseC) Is eliminated by the use of mortgage backed securitiesD) Is eliminated by the purchase of a stripped mortgage obligationE) All of the above are trueAnswer: A74. A bank replaces 5-year corporate bonds with a yield to maturity of 9.75 percent with 5-yearmunicipal bonds with a yield to maturity of 7 percent. This bank is in the 35 percent tax bracket and these bonds have the same default risk. What is the most likely reason this bank changed from the corporate to the municipal bonds?A) Liquidity riskB) Business riskC) Credit riskD) Tax exposureE) Interest rate riskAnswer: D75.Suppose a bank has found bank qualified municipal bonds which have a nominal gross rate ofreturn of 8 percent and that it can borrow funds needed for this purchase at a rate of 6.25 percent.This bond is in the 35 percent tax bracket. What is the net after-tax return on this bond?A) 5.20 percentB) 3.5 percentC) 1.75 percentD) 0 percentE) None of the aboveAnswer: B76.An investor can invest in either a tax-exempt security that pays 5% or a taxable corporate securityof comparable risk and maturity that pays 8%. At what marginal tax rate will the investor beindifferent between these two securities?A)25.0%B)32.5%C)37.5%D)57.5%E)62.5%Answer: C77.Which of the following would not be considered a bank qualified municipal security?A) A Columbia County general obligation bond to modernize the county fire department.B) A Bucks County general obligation bond to build a new sewer plant.C) A City of San Marcos general obligation bond to pay for street repairs.D) A City of Chicopee general obligation bond to pay for a new city jail.E) A Treasury bond to finance government debt.Answer: E78. A bond has three years to maturity and has a coupon rate of 15 percent. This bond is selling in themarket for $1072 and has a yield to maturity of 12%. What is the duration of this bond?A) 3 yearsB) 1 yearC) 1.92 yearsD) 2.45 yearsE) 2.64 yearsAnswer: E79. A bond has six years to maturity and has a coupon rate of 7.5 percent. Coupon payments are madeannually and this bond has a face value of $1000. This bond is selling in the market for $1127.What is the yield to maturity on this bond?A) 7.5 percentB) 5 percentC) 11.5 percentD) 2.5 percentE) None of the aboveAnswer: B80. A bond has eight years to maturity and a coupon rate of 6.5 percent. Coupon payments are madeannually and this bond has a face value of $1000. This bond is selling in the market for $862. What is the yield to maturity on this bond?A) 6.5 percentB) 10 percentC) 8.5 percentD) 9 percentE) None of the aboveAnswer: D81. A bond has eight years to maturity and a coupon rate of 6.5 percent. Coupon payments are madeannually and this bond has a face value of $1000. This bond is selling in the market for $862. If this bond is sold at the end of four years for $1046, what is the holding period return on this bond?A) 6.5 percentB) 12 percentC) 9 percentD) 6 percentE) None of the aboveAnswer: B82. A security which was created by the Treasury to protect against inflation risk is called a(n):A) CMOB) FNMAC) GNMAD) TIPSE) CDAnswer: D83. A financial institution that is concerned about the possibility that the purchasing power of both theinterest income and principal income will decline on a loan is concerned about which of thefollowing things?A) Business riskB) Liquidity riskC) Tax exposureD) Credit riskE) Inflation riskAnswer: E84. A bank that is concerned that the economic conditions of the market area they serve may take adownturn with falling demand for loans and higher bankruptcies in the areas is concerned about which of the following things?A) Business riskB) Liquidity riskC) Tax exposureD) Credit riskE) Inflation riskAnswer: A85.Which of the following is a characteristic of Treasury bills?A) They are coupon instrumentsB) They are the short term debt instruments issued by major corporationsC) They are discount securitiesD) They have more risk than other money market securitiesE) All of the above are characteristics of Treasury billsAnswer: C86.The investment maturity strategy which calls for the bank to put all of their investment assets intovery long term securities is called the:A) Front-end-loaded maturity policyB) Back-end-loaded maturity policyC) Ladder or spaced maturity policyD) Barbell investment portfolio strategyE) Rate expectation approachAnswer: B87. The Lancaster State Bank is thinking about purchasing a corporate bond that has a yield of 8.5%.This bank has a marginal tax rate of 25%. What is the after-tax yield on this bond?A) 11.33%B) 8.5%C) 6.375%D) 2.125%E) None of the aboveAnswer: C88.The Ferson National Bank is thinking about purchasing a municipal bond that has a yield of 5.5%.This bank has a marginal tax rate of 30%. What is the after-tax yield on this bond?A) 7.86%B) 5.5%C) 3.85%D) 1.65%E) None of the aboveAnswer: B89.The Stumbaugh State Bank is thinking about purchasing a corporate bond that has a yield of 9%.This bank has a marginal tax rate of 40%. What is the after-tax yield on this bond?A) 15%B) 9%C) 5.4%D) 3.6%E) None of the above90.The Price Perpetual Bank has purchased a bond that has a coupon rate of 5.5% and a face value of$1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. What is the yield to maturity on this bond?A) 7%B) 5.5%C) 11%D) 4.70%E) None of the aboveAnswer: A91.The Price Perpetual Bank has purchased a bond that has a coupon rate of 5.5% and a face value of$1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. The Price Perpetual Bank is planning on selling this bond at the end of 5 years for $1036.50. What is the holding period return on this bond?A) 5.5%B) 7%C) 11%D) 9%E) None of the aboveAnswer: D92.The Farmer National Bank has purchased a bond that has a coupon rate of 11.5% and a face valueof $1000. It has 16 years to maturity and is selling in the market for $1309.80. The bond makes annual coupon payments. What is the yield to maturity on this bond?A) 11.5%B) 16%C) 8%D) 12.21%E) None of the aboveAnswer: C93.The Farmer National Bank has purchased a bond that has a coupon rate of 11.5% and a face valueof $1000. It has 16 years to maturity and is selling in the market for $1309.80. The bond makes annual coupon payments. The Farmer National Bank plans on selling this bond at the end of 8 years for $1071. What is the holding period return on this bond?A) 7%B) 8%C) 11.5%D) 16%E) None of the aboveAnswer: A94.The Johnson National Bank has purchased a bond that has a coupon rate of 5.5% and a face value of$1000. It has 4 years to maturity and is selling in the market for $917. The bond makes annual coupon payments. What is the yield to maturity on this bond?A) 5.5%B) 4.0%C) 1.5%D) 8%E) None of the above95.The Johnson National Bank has purchased a bond that has a coupon rate of 5.5% and a face value of$1000. It has 4 years to maturity and is selling in the market for $917. The bond makes annual coupon payments. What is the duration of this bond?A) 3.38 yearsB) 3.68 yearsC) 4.00 yearsD) 5.50 yearsE) None of the aboveAnswer: B96.The Sheets Savings and Loan Association has purchased a bond that has a coupon rate of 7.5% anda face value of $1000. It has 5 years to maturity and is selling in the market for $1063. The bondmakes annual coupon payments. What is the duration of this bond?A) 7.50 yearsB) 5.00 yearsC) 4.65 yearsD) 4.37 yearsE) None of the aboveAnswer: D97.The Dillinger State Bank has purchased a bond from the Interstate Manufacturing Company thathas 15 years to maturity and has a coupon rate of 12.5%. Market interest rates have recentlydeclined to 8% and the Dillinger State Bank is worried that the Interstate Manufacturing Company will retire the bond and issue new ones with a lower coupon rate. What type of risk is the Dillinger State Bank worried about?A) Credit riskB) Interest-rate riskC) Business- riskD) Call riskE) Prepayment riskAnswer: E98.The Terrell State Bank is a small bank located in Guyman, Oklahoma. All of their loans areagriculture and small business loans in Guyman. They want to buy a municipal bond from the state of South Carolina. What type of risk are they likely trying to reduce with this purchase?A) Credit riskB) Interest-rate riskC) Business riskD) Call riskE) Prepayment riskAnswer: C99.The Caldwell National Bank has purchased a bond that pays a coupon rate of 10.5%. They are alittle concerned because they believe rates will decrease in the future and they will not be able to reinvest the coupon payments at the same rate. What type of risk are they concerned about?A) Credit riskB) Interest rate riskC) Business riskD) Call riskE) Prepayment riskAnswer: B100.Moody’s Investor Service has added the numbers 1, 2 and 3 to some of their ratings. What type of risk are these ratings attempting to measure?A) Credit riskB) Interest rate riskC) Business riskD) Call riskE) Prepayment riskAnswer: A101.The Roy State Bank has just purchase a portfolio of asset backed securities. What type of risk do these securities have that other securities do not have?A) Credit riskB) Interest rate riskC) Business riskD) Call riskE) Prepayment riskAnswer: E102.The Carey State Bank has purchased a bank-qualified municipal bond with a yield of 6%. This bank has had to borrow funds to make this purchase at a cost of 5.25%. This bank is in the 40% tax bracket. What is the net after-tax return on this bank-qualified municipal bond?A) 6.00%B) .75%C) 2.85%D) 2.43%E) None of the aboveAnswer: D103.The Wesson Wisconsin State Bank has purchased a bank-qualified municipal bond with a yield of7.5%. This bank had to borrow funds to make this purchase at a cost of 6%. This bank is in the 25%tax bracket. What is the net after-tax return on this bank-qualified municipal bond?A) 7.5%B) 2.7%C) 3.0%D) 1.5%E) None of the aboveAnswer: B104.The Goodknight Company has issued securities with 45 days to maturity. What type of security have they issued?A) Commercial PaperB) Banker’s AcceptanceC) Corporate BondD) Certificate of DepositE) Municipal BondAnswer: A105.The Dakota National Bank has purchased a security issued by the state of Tennessee that has 20 years to maturity. What type of security have they purchased?A) Commercial PaperB) Banker’s AcceptanceC) Corporate BondD) Certificate of DepositE) Municipal BondAnswer: E。

商业银行经营管理概述

全额准备金制度演变为部分准备金制度，使商业银行的信贷业务得以扩大；
保管凭条演化为银行券，使现代货币得以产生；
保管业务演化为存款业务，并使支票制度、结算制度得以建立，使商业银行具有了创造货币、创造信用的功能。
（二）现代银行业的建立 1694年英格兰银行的创办，标志着现代银行制度的建立。
银行产生业务范围经济的主要原因是各种投入和业务对同一固定资产和信息资源、人力资源的分享
业务范围经济形成的假说：从事多种业务经营的银行可以享受到成本节约、增加收益的好处，其原因是：固定成本分摊、信息经济、降低风险、客户成本经济。
克拉里设立了“双产品业务范围效率程度比较模型”，用来表示银行业务范围经济的程度，其模型表达式为：
Bankrupt 破产者；无支付能力者
３.原始银行演进为现代商业银行的三个转折点
原始银行（近代银行）是在货币经营业的基础上开始经营放款业务的前资本主义的银行业，其具有高利贷的性质、以政府为主要的贷款对象，偏向于非生产性用途之特征。
近代银行的出现是在中世纪的欧洲。最早的银行是意大利的威尼斯银行，建于1171年，随后又有了1407年设立的热那亚银行，1609 年在荷兰成立的阿姆斯特丹银行，1619年在德国成立了汉堡银行
汇兑等与货币有关的服务工作。 2.业务特点：保有100%的现金准备，客户交予保管的货
币不用于贷款生息；在代客保管货币的活动中，要向客户收取保管费，而不是相反。
从历史上看，银行一词被认为来源于近代意大利
商业银行是从货币经营业者演变而来的：
Banco—————Bank 、Banguc
（凳子、意大利语）-（银行、英语）（法语）
产生有规模经济状态有两个主要原因：

商业银行管理彼得S.罗斯第八版课后答案chapter_01

CHAPTER 1AN OVERVIEW OF BANKS AND THE FINANCIAL-SERVICES SECTORGoal of This Chapter: In this chapter you will learn about the many roles financial service providers play in the economy today. You will examine how and why the banking industry and the financial services marketplace as a whole is rapidly changing, becoming new and different as we move forward into the future. You will also learn about new and old services offered to the public.Key Topics in This Chapter•Powerful Forces Reshaping the Industry•What is a Bank?•The Financial System and Competing Financial-Service Institutions•Old and New Services Offered to the Public•Key Trends Affecting All Financial-Service Firms•Appendix: Career Opportunities in Financial ServicesChapter OutlineI. I ntroduction: P owerful Forces Reshaping the IndustryII. W hat Is a Bank?A. D efined by the Functions It Serves and the Roles It Play:B. B anks and their Principal CompetitorsC. Legal Basis of a BankD. D efined by the Government Agency That Insures Its DepositsIII.The Financial System and Competing Financial-Service InstitutionsA.Savings AssociationsB.Credit UnionsC.Money Market FundsD.Mutual FundsE.Hedge FundsF.Security Brokers and DealersG.Investment BankersH.Finance CompaniesI.Financial Holding CompaniesJ.Life and Property/Casualty Insurance CompaniesIV. T he Services Banks and Many of Their Closest Competitors Offer the PublicA. S ervices Banks Have Offered Throughout History1.Carrying Out Currency Exchanges2.Discounting Commercial Notes and Making Business Loans3.Offering Savings Deposits4.Safekeeping of Valuables and Certification of Value5.Supporting Government Activities with Credit6.Offering Checking Accounts (Demand Deposits)7.Offering Trust ServicesB. S ervices Banks and Many of Their Financial-Service Competitors HaveOffered More Recently1.Granting Consumer Loans2.Financial Advising3.Managing Cash4.Offering Equipment Leasing5.Making Venture Capital Loans6.Selling Insurance Policies7.Selling Retirement PlansC. Dealing in Securities: Offering Security Brokerage and Investment Banking Services1. Offering Security Underwriting2. Offering Mutual Funds and Annuities3. Offering Merchant Banking Services4. Offering Risk Management and Hedging ServicesV. Key Trends Affecting All Financial-Service FirmsA. S ervice ProliferationB. R ising CompetitionC. G overnment DeregulationD. A n Increasingly Interest-Sensitive Mix of FundsE. T echnological Change and AutomationF. C onsolidation and Geographic ExpansionG. C onvergenceH. G lobalizationVI. T he Plan of This BookVII. S ummaryConcept Checks1-1. What is a bank? How does a bank differ from most other financial-service providers?A bank should be defined by what it does; in this case, banks are generally those financial institutions offering the widest range of financial services. Other financial service providers offer some of the financial services offered by a bank, but not all of them within one institution.1-2. Under U.S. law what must a corporation do to qualify and be regulated as a commercial bank?Under U.S. law, commercial banks must offer two essential services to qualify as banks for purposes of regulation and taxation, demand (checkable) deposits and commercial loans. More recently, Congress defined a bank as any institution that could qualify for deposit insurance administered by the FDIC.1-3.Why are some banks reaching out to become one-stop financial service conglomerates? Is this a good idea in your opinion?There are two reasons that banks are increasingly becoming one-stop financial service conglomerates. The first reason is the increased competition from other types of financial institution s and the erosion of banks’ traditional service areas. The second reason is the Financial Services Modernization Act which has allowed banks to expand their role to be full service providers.1-4. Which businesses are banking’s closest and toughest com petitors? What services do they offer that compete directly with banks’ services?Among a bank’s closest competitors are savings associations, credit unions, money market funds, mutual funds, hedge funds, security brokers and dealers, investment banks, finance companies, financial holding companies, and life andproperty-casualty insurance companies. All of these financial service providers are converging and embracing each other’s innovations. The Financial Services Modernization Act has allowed many of these financial service providers to offer the public one-stop shopping for financial services.1-5. What is happening to banking’s share of the financial mark etplace and why? What kind of banking and financial system do you foresee for the future if present trends continue?The Financial Services Modernization Act of 1999 allowed many of the banks’ closest competitors to offer a wide array of financial services thereby taking away market share from “traditional” banks. Banks and their closest competitors are converging into one-stop shopping for financial services and this trend should continue in the future1-6. What different kinds of services do banks offer the public today? What services do their closest competitors offer?Banks offer the widest range of services of any financial institution. They offer thrift deposits to encourage saving and checkable (demand) deposits to provide a means of payment for purchases of goods and services. They also provide credit through direct loans, by discounting the notes that business customers hold, and by issuing credit guarantees. Additionally, they make loans to consumers for purchases of durable goods, such as automobiles, and for home improvements, etc. Banks also manage the property of customers under trust agreements and manage the cash positions of their business customers. They purchase and lease equipment to customers as an alternative to direct loans. Many banks also assist their customers with buying and selling securities through discount brokerage subsidiaries, the acquisition and sale of foreign currencies, the supplying of venture capital to start new businesses, and the purchase of annuities to supply future funding at retirement or for other long-term projects such as supporting a college education. All of these services are also offered by their closest competitors. Banks and their closest competitors are converging and becoming the financial department stores of the modern era.1-7. What is a financial department store? A universal bank? Why do you think these institutions have become so important in the modern financial system? Financial department store and universal bank refer to the same concept. A financial department store is an institution where banking, fiduciary, insurance, and security brokerage services are unified under one roof. A bank that offers all these services is normally referred to as a universal bank. These have become important because of convergence and changes in regulations that have allowed financial service providers to offer all services under one roof1-8. Why do banks and other financial intermediaries exist in modern society, according to the theory of finance?There are multiple approaches to answering this question. The traditional view of banks as financial intermediaries sees them as simultaneously fulfilling the financial-service needs of savers (surplus-spending units) and borrowers(deficit-spending units), providing both a supply of credit and a supply of liquid assets. A newer view sees banks as delegated monitors who assess and evaluate borrowers on behalf of their depositors and earn fees for supplying monitoring services. Banks also have been viewed in recent theory as suppliers of liquidity andtransactions services that reduce costs for their customers and, through diversification, reduce risk. Banks are also critical in the payment system for goods and services and have played an increasingly important role as a guarantor and a risk management role for customers.1-9. How have banking and the financial services market changed in recent years? What powerful forces are shaping financial markets and institutions today? Which of these forces do you think will continue into the future?Banking is becoming a more volatile industry due, in part, to deregulation which has opened up individual banks to the full force of the financial marketplace. At the same time the number and variety of banking services has increased greatly due to the pressure of intensifying competition from nonbank financial-service providers and changing public demand for more conveniently and reliably provided services. Adding to the intensity of competition, foreign banks have enjoyed success in their efforts to enter countries overseas and attract away profitable domestic business and household accounts.1-10. Can you explain why many of the forces you named in the answer to the previous question have led to significant problems for the management of banks and other financial firms and their stockholders?The net result of recent changes in banking and the financial services market has been to put greater pressure upon their earnings, resulting in more volatile returns to stockholders and an increased bank failure rates. Some experts see banks' role and market share shrinking due to restrictive government regulations and intensifying competition. Institutions have also become more innovative in their service offerings and in finding new sources of funding, such as off-balance-sheet transactions. The increased risk faced by institutions today, therefore, has forced managers to more aggressively utilize a wide array of tools and techniques to improve and stabilize their earnings streams and manage the various risks they face. 1-11. What do you think the financial services industry will look like 20 years from now? What are the implications of your projections for its management today? There appears to be a trend toward continuing consolidation and convergence. There are likely to be fewer financial service providers in the future and many of these will be very large and provide a broad range of financial services under one roof. In addition, global expansion will continue and will be critical to the survival of many financial service providers. Management of financial service providers willhave to be more technologically astute and be able to make a more diverse set of decisions including decisions about mergers, acquisitions and global expansion as well as new services to add to the firm.Problems and Projects1. You have just been hired as the marketing officer for the new First National Bank of Vincent, a suburban banking institution that will soon be serving a local community of 120,000 people. The town is adjacent to a major metropolitan area with a total population of well over 1 million. Opening day for the newly chartered bank is just two months away, and the president and the board of directors are concerned that the new bank may not be able to attract enough depositors and good-quality loan customers to meet its growth and profit projections. There are 18 other financial-service competitors in town, including two credit unions, three finance companies, four insurance agencies, and two security broker offices. Your task is to recommend the various services the bank should offer initially to build up an adequate customer base. You are asked to do the following:a.Make a list of all the services the new bank could offer, according to current regulations.b.List the type of information you will need about the local community tohelp you decide which of the possible services are likely to have sufficientdemand to make them profitable.c.Divide the possible services into two groups--those you think are essentialto customers and should be offered beginning with opening day, and thosethat can be offered later as the bank grows.d. Briefly describe the kind of advertising campaign you would like to run tohelp the public see how your bank is different from all the other financialservice providers in the local area. Which services offered by the nonblankservice providers would be of most concern to the new bank’smanagement?Banks can offer, if they choose, a wide variety of financial services today. These services are listed below. However, unless they are affiliated with a larger bank holding company and can offer some of these services through that company, it may be more limited in what it can offer.Regular Checking Accounts Management Consulting Services NOW Accounts Letters of CreditPassbook Savings Deposits Business Inventory Loans Certificates of Deposit Asset-Based Commercial Loans Money Market Deposits Discounting of Commercial Paper Automobile Loans Plant and Equipment Loans Retirement Savings Plans Venture Capital LoansNonauto Installment Loans to IndividualsResidential Real Estate Loans Leasing Plans for Business Property and EquipmentHome Improvement Loans Security Dealing and Underwriting Personal Trust Management Services Discount Security BrokerageCommercial Trust Services Institutional Trust Services Foreign Currency Trading and ExchangePersonal Financial Advising Personal Cash-Management ServicesInsurance Policy Sales (Mainly Credit-Life)Insurance Today (Except in Some States)) Standby Credit Guarantees Acceptance FinancingTo help the new bank decide which services to offer it would be helpful to gather information about some of the following items in the local community:School Enrollments and Growth in School EnrollmentsEstimated Value of Residential and Commercial PropertyRetail SalesPercentage of Home Ownership Among Residents in the AreaNumber and Size (in Sales and Work Force) of Local Business Establishments Major Population Locations (i.e., Major Subdivisions, etc.) and Any Projected Growth AreasPopulation Demographics (i.e., Age Distribution of the Area)Projected Growth Areas of Industries in the AreaEssential services the bank would probably want to offer right from the beginning includes:Regular Checking Accounts Home Improvement Loans Automobile and other Consumer-type Money Market Deposit Accounts Installment Loans Retirement Savings PlansNOW Accounts Business Inventory LoansPassbook Savings Deposits Discounting of High-QualityCommercial NotesResidential Real Estate LoansCertificates of DepositAs the bank grows, opportunities for the profitable sale of additional services usually increase, especially for trust services for individuals and smaller businesses and personal financial advising as well as some commercial (plant and equipment) loans and leases. Further growth may result in the expansion of commercial trust services as well as a widening variety of commercial loans and credit guarantees.The bank would want to develop an advertising campaign that sends a message to potential customers that the new bank is, indeed, different from its competitors. Small banks often have the advantage of offering highly personalized services in which their customers are known and recognized and services are tailored to each individual customer's special financial needs. Quality and reliability of banking service are often more important to individual customers than is price. A new bank must try to sell prospective customers, most of who will come from other banks in the area, on personalized services, quality, and reliability - all three of which should be emphasized in its advertising program.2. Leading money center banks in the United States have accelerated their investment banking activities all over the globe in recent years, purchasing corporate debt securities and stock from their business customers and reselling those securities to investors in the open market. Is this a desirable move by these banking organizations from a profit standpoint? From a risk standpoint? From the public interest point of view? How would you research their question? If you were managing a corporation that had placed large deposits with a bank engaged in such activities, would you be concerned about the risk to your company's funds? What could you do to better safeguard those funds?In the 1970's and early 1980's investment banking was so profitable that commercial bankers were lured into the investment banking business largely because of its greater profit potential than possessed by more traditional commercial banking activities. Later foreign banks, particularly the British and Japanese banking firms, began to attract away large corporate customers from U.S. banks, who were restrained by regulation from offering many investment banking services. Thus, U.S. banks ran into severe difficulty in simply trying to hold onto their traditional corporate credit and deposit accounts because they could not compete service-wise in the investment banking field. Today, banks are allowed to underwrite securities through either a subsidiary or through a holding company structure. This change occurred as part of the Gramm-Leach-Bliley Act (Financial Services Modernization Act).Unfortunately, if investment banking is more profitable than traditional banking product lines, it is also more risky, consistent with the basic tenet of finance that risk and return are directly related. That is why the Federal Reserve Board has placed such strict limits on the type of organization that can offer these services. Currently, the underwriting of most corporate securities must be done through a subsidiary or as a separate part of the holding company so that, in theory at least, the bank is not responsible for any losses incurred. For this reason there may be little reason for depositors (including large corporate depositors) to be concerned about risk exposure from investment banking. Moreover, the ability to offer such services may make U.S. banks more viable in the long run which helps their corporate customers who depend upon them for credit.On the other hand, opponents of investment banking powers for bank operations inside the U.S. have some reasonable concerns that must be addressed. There are, for example, possible conflicts of interest. Information gathered in the investment banking division could be used to the detriment of customers purchasing other bank services. For example, a customer seeking a loan may be told that he or she must buy securities from the bank's investment banking division in order to receive a loan. Moreover, banks could gain effective control over some nonblank industrial corporations which might subject them to added risk exposure and place industrial firms not allied with banks at a competitive disadvantage. As a result theGramm-Leach-Bliley Act has built in some protections to prevent this from happening.3. The term bank has been applied broadly over the years to include a diverse set of financial-service institutions, which offer different financial service packages.Identify as many o f the different kinds of “banks” as you can. How do the “banks” you have identified compare to the largest banking group of all – the commercial banks? Why do you think so many different financial firms have been called banks? How might this terminological confusion affect financial-service customers?The general public tends to classify anything as a bank that offers some sort of financial service, especially deposit and loan services. Other institutions that are often referred to as a bank without being one are savings associations, credit unions, money market funds, mutual funds, hedge funds, security brokers and dealers, investment banks, finance companies, financial holding companies and life and property/casualty insurance companies. All of these institutions offer some of the services that a commercial bank offers, but generally not the entire scope of services. Since providers of financial services are normally called banks by the general public they are able to take away business from traditional banks and it is of utmost importance for commercial banks to clarify their unique position among financial services providers.4. What advantages can you see to banks affiliating with insurance companies? How might such an affiliation benefit a bank? An insurer? Can you identify any possible disadvantages to such an affiliation? Can you cite any real world examples of bank-insurer affiliations? How well do they appear to have worked out in practice?Before Glass-Steagall banks used to sell insurance services to their customers on a regular basis. in particular, banks would sell life insurance companies to loan customers to ensure repayment of the loan in case of death or disablement. These reasons still exist today and the right to sell insurances to customers again benefits banks in allowing them to offer their customers complete financial packages from financing the home or car to insure it, from giving investment advice to selling life insurance policies and annuities for retirement planning. Generally, a bank customer who is already purchasing a service from a bank might feel compelled to purchase an insurance product, as well. On the other hand, insurance companies sometimes have a negative image, which makes it more difficult to sell certain insurance products. Combining their products with the trust that people generally have in banks will make it easier for them to sell their products. The most prominent example of a bank-insurer affiliation is the merger of Citicorp and Traveler’s Insurance to Citigroup. However, given that Citigroup has sold Traveler’s Insurance indicates that the anticipated synergy effects did not materialize.5. Explain the difference between consolidation and convergence. Are these trends in banking and financial services related? Do they influence each other? How? Consolidation refers to increase in the size of financial institutions and the decline in the number of small independently owned banks and financial service providers. Convergence is the bringing together of firms from different industries to createconglomerate firms offering multiple services. Clearly, these two trends are related. In their effort to compete with each other, banks and their closest competitors have acquired other firms in their industry as well across industries to provide multiple financial services in multiple markets.6. What is a financial intermediary? What are their key characteristics? Is a bank a type of financial intermediary? Why? What other financial-services companies are financial intermediaries? What important role within the financial system do financial intermediaries play?A financial intermediary is a business that interacts with deficit spending individuals and institutions and surplus spending individuals and institutions. For that reason any financial service provider (including banks) is considered a financial intermediary. In their function as intermediaries they act as a bridge between the deficit and surplus spending units by offering financial services to the surplus spending individuals and then loaning those funds to the deficit spending individuals. Financial intermediaries accelerate economic growth by increasing the pool of available funds and lowering the risk of investments through diversification.。

商业银行管理彼得S.罗斯英文原书第8版英语试题库Chap012

Chapter 12Managing and Pricing Deposit ServicesFill in the Blank Questions1. A(n) _________________________ requires the bank to honor withdrawals immediately uponrequest.Answer: demand deposit2. A(n) _________________________ is an interest bearing checking account and gives the bank theright to insist on prior notice before customer withdrawals can be honored.Answer: Negotiable order of withdrawal (NOW)3. A(n) _________________________ is a short-maturity deposit which pays a competitive interestrate. Only 6 preauthorized drafts per month are allowed and only 3 of these can be by check.Answer: money market deposit account4. _________________________ are designed to attract funds from customers who wish to set asidemoney in anticipation of future expenditures or financial emergencies.Answer: Thrift deposits5. _________________________ are the stable base of deposited funds that are not highly sensitiveto movements in market interest rates and tend to remain with a depository institution.Answer: Core deposits6. Some people feel that everyone is entitled access to a minimum level of financial service no mattertheir income level. This issue is called the issue of _________________________.Answer: basic (lifeline) banking7. _________________________ is a way of pricing deposit services in which the rate or return orfees charged on the deposit account are based on the cost of offering the service plus a profitmargin.Answer: Cost plus pricing8. When financial institutions tempt customers by paying postage both ways in bank-by-mail servicesor by offering free gifts such as teddy bears, they are practicing ___________.Answer: nonprice competition9. The _________________________is the added cost of bringing in new funds.Answer: marginal cost10. _________________________ pricing is where the financial institution sets up a schedule of feesin which the customer pays a low or no fee if the deposit balance stays above some minimum level and pays a higher fee if the balance declines below that minimum level.Answer: Conditional11. When a customer is charged a fixed charge per check this is called __________________ pricing.Answer: flat rate12. When a customer is charged based on the number and kinds of services used, with the customersthat use a number of services being charged less or having some fees waived, this is called__________________ pricing.Answer: relationship13. _________________________ is part of the new technology for processing checks where the banktakes a picture of the back and the front of the original check and which can now be processed as if they were the original.Answer: Check imaging14. A(n) _________________________ is a thrift account which carries a fixed maturity date andgenerally carries a fixed interest rate for that time period.Answer: time deposit15. A(n) _________________________ is a conditional method of pricing deposit services in whichthe fees paid by the customer depend mainly on the account balance and volume of activity.Answer: deposit fee schedule16. The _________________________ was passed in 1991 and specifies the information thatinstitutions must disclose to their customers about deposit accounts.Answer: Truth in Savings Act17. The _________________________ must be disclosed to customers based on the formula of oneplus the interest earned divided by the average account balance adjusted for an annual 365 day year.It is the interest rate the customer has actually earned on the account.Answer: annual percentage yield (APY)18. A(n) _________________________ is a retirement plan that institutions can sell which is designedfor self-employed individuals.Answer: Keogh plan19. Deposit institution location is most important to ______-income consumers.Answer: low20. _____-income consumers appear to be more influenced by the size of the financial institution.Answer: high21.For decades depository institutions offered one type of savings plan. could be opened withas little as $5 and withdrawal privileges were unlimited.Answer: Passbook savings deposits22.CD’s allow depositors to switch to a higher interest rate if market ratesrise.Answer: Bump-up23.CD’s permit periodic adjustm ents in promised interest rates.Answer: Step-up24.CD’s allow the depositor t o withdraw some of his or her funds without awithdrawal penalty.Answer: Liquid25.A(n) , which was authorized by Congress in 1997, allows individuals to makenon-tax-deductible contributions to a retirement fund that can grow tax free and also pay no taxes on their investment earnings when withdrawn.Answer: Roth IRA26.Due to the fact that they may be perceived as more risky, banks generally offer higherdeposit rates than traditional banks.Answer: virtual27. are accounts in domestic banking institutions where the U.S.Treasury keeps most of their operating funds.Answer: Treasury Tax and Loan Accounts (TT&L accounts)28. is a process where merchants and utility companies take theinformation from a check an individual has just written and electronically debits the individual’s account instead of sending the check through the regular check clearing process.Answer: electronic check conversion29.On October 28, 2004, became the law, permitting depository institutions toelectronically transfer check images instead of the checks themselves.Answer: Check 2130.The to the cost plus pricing derives the weighted average cost of all fundsraised and is based on the assumption that it is not the cost of each type of deposit that matters but rather the weighted average cost of all funds that matters.Answer: pooled-funds cost approachTrue/False QuestionsT F 31. The volume of core deposits at U.S. banks has been growing in recent years relative to other categories of deposits.Answer: FalseT F 32. The U.S. Treasury keeps most of its operating funds in TT&L deposits, according to the textbook.Answer: TrueT F 33. Deposits owned by commercial banks and held with other banks are called correspondent deposits.Answer: TrueT F 34. The implicit interest rate on checkable deposits equals the difference between the cost of supplying deposit services to a customer and the amount of the service charge actuallyassessed that customer.Answer: TrueT F 35. Legally imposed interest-rate ceilings on deposits were first set in place in the United States after passage of the Bank Holding Company Act.Answer: FalseT F 36. Gradual phase-out of legal interest-rate ceilings on deposits offered by U.S. banks was first authorized by the Glass-Steagall Act.Answer: FalseT F 37. The contention that there are certain banking services (such as small loans or savings and checking accounts) that every citizen should have access to is usually called socializedbanking.Answer: FalseT F 38. Domestic deposits generate legal reserves.Answer: TrueT F 39. Excess legal reserves are the source out of which new bank loans are created.Answer: TrueT F 40. Demand deposits are among the most volatile and least predictable of a bank's sources of funds with the shortest potential maturity.Answer: TrueT F 41. IRA and Keogh deposits have great appeal for bankers principally because they can be sold bearing relatively low (often below-market) interest rates.Answer: FalseT F 42. In general, the longer the maturity of a deposit, the lower the yield a financial institution must offer to its depositors because of the greater interest-rate risk the bank faces withlonger-term deposits.Answer: FalseT F 43. The availability of a large block of core deposits decreases the duration of a bank's liabilities.Answer: FalseT F 44. Interest-bearing checking accounts, on average, tend to generate lower net returns than regular (noninterest-bearing) checking accounts.Answer: FalseT F 45. Personal checking accounts tend to be more profitable than commercial checking accounts.Answer: FalseT F 46. NOW accouts can be held by businesses and individuals and are interest bearing checking accounts.Answer: FalseT F 47. A MMDA is a short term deposit where the bank can offer a competitive interest rate and which allows up to 6 preauthorized drafts per month.Answer: TrueT F 48. A Roth IRA allows an individual to accumulate investment earnings tax free and also pay no tax on their investment earnings when withdrawn provided the taxpayer follows therules on this new account.Answer: TrueT F 49. Competition tends to raise deposit interest costs.Answer: TrueT F 50. Competition lowers the expected return to a bank from putting its deposits to work.Answer: TrueT F 51. A bank has full control of its deposit prices in the long run.Answer: FalseT F 52. Nonprice competition for deposits has tended to distort the allocation of scarce resources in the banking sector.Answer: TrueT F 53. Deposits are usually priced separately from loans and other bank services.Answer: TrueT F 54. According to recent Federal Reserve data no-fee savings accounts are on the decline.Answer: TrueT F 55. According to recent survey information provided by the staff of the Federal Reserve Board the average level of fees on most types of checking and NOW accounts appear to haverisen.Answer: TrueT F 56. The Truth in Savings Act requires a bank to disclose to its deposit customer the frequency with which interest is compounded on all interest-bearing accounts.Answer: TrueT F 57. Under the Truth in Savings Act customers must be informed of the impact of any early deposit withdrawals on the annual percentage yield they expect to receive from aninterest-bearing deposit.Answer: TrueT F 58. The number one factor households consider in selecting a bank to hold their checkingaccount is, according to recent studies cited in this chapter, low fees and low minimumbalance.Answer: FalseT F 59. The number one factor households consider in choosing a bank to hold their savings deposits, according to recent studies cited in this chapter, is location.Answer: FalseT F 60. Conditionally free deposits for customers mean that as long as the customers do not go above a certain level of deposits there are no monthly fees or per transaction charges.Answer: FalseT F 61. When a bank temporarily offers higher than average interest rates or lower than average customer fees in order to attract new business they are practicing conditional pricing.Answer: FalseT F 62. Web-centered banks with little or no physical facilities are known as ________ banks Answer: TrueT F 63. The total dollar value of checks paid in the United States has grown modestly in recent years.Answer: FalseT F 64. There are still a number of existing problems with online bill-paying services which has limited the growth.Answer: TrueT F 65. The depository institutions which tend to have the highest deposit yields are credit unions.Answer: FalseT F 66. Urban markets are more responsive to deposit interest rates and fees than rural markets.Answer: FalseT F 67. Research indicates that at least half of all households and small businesses hold their primary checking account at a depository institution situated within 3 miles of theirlocation.Answer: TrueMultiple Choice Questions68. Deposit accounts whose principal function is to make payments for purchases of goods andservices are called:A) DraftsB) Second-party payments accountsC) Thrift depositsD) Transaction accountsE) None of the aboveAnswer: D69. Interest payments on regular checking accounts were prohibited in the United States under terms ofthe:A) Glass-Steagall ActB) McFadden-Pepper ActC) National Bank ActD) Garn-St. Germain Depository Institutions ActE) None of the aboveAnswer: A70. Money-market deposit accounts (MMDAs), offering flexible interest rates, accessible forpayments purposes, and designed to compete with share accounts offered by money market mutual funds, were authorized by the:A) Glass-Steagall ActB) Depository Institutions Deregulation and Monetary Control Act (DIDMCA)C) Bank Holding Company ActD) Garn-St.Germain Depository Institutions ActE) None of the aboveAnswer: D71. The stable and predictable base of deposited funds that are not highly sensitive to movements inmarket interest rates but tend to remain with the bank are called:A) Time depositsB) Core depositsC) Consumer CDsD) Nontransaction depositsE) None of the aboveAnswer: B72. Noegotiable Orders of Withdrawal (NOW) accounts, interest-bearing savings accounts that can beused essentially the same as checking accounts, were authorized by:A) Glass-Steagall ActB) Depository Institutions Deregulation and Monetary Control Act (DIDMCA)C) Bank Holding Company ActD) Garn-St. Germain Depository Institutions ActE) None of the aboveAnswer: B74. A deposit which offers flexible money market interest rates but is accessible for spending bywriting a limited number of checks or executing preauthorized drafts is known as a:A) Demand depositB) NOW accountC) MMDAsD) Time depositE) None of the aboveAnswer: C75. The types of deposits that will be created by the banking system depend predominantly upon:A) The level of interest ratesB) The state of the economyC) The monetary policies of the central bankD) Public preferenceE) None of the above.Answer: D76. The most profitable deposit for a bank is a:A) Time depositB) Commercial checking accountC) Personal checking accountD) Passbook savings depositE) Special checking accountAnswer: B77. Some people feel that individuals are entitled to some minimum level of financial services nomatter what their income level. This issue is often called:A) Lifeline bankingB) Preference bankingC) Nondiscriminatory bankingD) Lifeboat bankingE) None of the aboveAnswer: A78. The formula Operating Expense per unit of deposit service + Estimated overhead expense +Planned profit from each deposit service unit sold reflects what deposit pricing method listedbelow?A) Marginal cost pricingB) Cost plus pricingC) Conditional pricingD) Upscale target pricingE) None of the above.Answer: B79. Using deposit fee schedules that vary deposit prices according to the number of transactions, theaverage balance in the deposit account, and the maturity of the deposit represents what deposit pricing method listed below?A) Marginal cost pricingB) Cost plus pricingC) Conditional pricingD) Upscale target pricingE) None of the above.Answer: C80. The deposit pricing method that favors large-denomination deposits because services are free if thedeposit account balance stays above some minimum figure is called:A) Free pricingB) Conditionally free pricingC) Flat-rate pricingD) Upscale target pricingE) Marginal cost pricingAnswer: B81. The federal law that requires U.S. depository institutions to make greater disclosure of the fees,interest rates, and other terms attached to the deposits they sell to the public is called the:A) Consumer Credit Protection ActB) Fair Pricing ActC) Consumer Full Disclosure ActD) Truth in Savings ActE) None of the above.Answer: D82. Depository institutions selling deposits to the public in the United States must quote the rate ofreturn pledged to the owner of the deposit which reflects the customer's average daily balance kept in the deposit. This quoted rate of return is known as the:A) Annual percentage rate (APR)B) Annual percentage yield (APY)C) Daily deposit yield (DDY)D) Daily average return (DAR)E) None of the above.Answer: B83. According to recent studies cited in this book, in selecting a bank to hold their checking accountshousehold customers rank first which of the following factors?A) SafetyB) High deposit interest ratesC) Convenient locationD) Availability of other servicesE) Low fees and low minimum balance.Answer: C84. According to recent studies cited in this chapter, in choosing a bank to hold their savings depositshousehold customers rank first which of the following factors?A) FamiliarityB) Interest rate paidC) Transactional convenienceD) LocationE) Fees charged.Answer: A85. According to recent studies cited in this chapter, in choosing a bank to supply their deposits andother services business firms rank first which of the following factors?A) Quality of financial advice givenB) Financial health of lending institutionC) Whether loans are competitively pricedD) Whether cash management and operations services are provided.E) Quality of bank officers.Answer: B86. A financial institution that charges customers based on the number of services they use and giveslower deposit fees or waives some fees for a customer that purchases two or more services ispracticing:A) Marginal cost pricingB) Conditional pricingC) Relationship pricingD) Upscale target pricingE) None of the aboveAnswer: C87. A bank determines from an analysis on its deposits that account processing and other operatingexpenses cost the bank $3.95 per month. It has also determined that its non operating expenses on its deposits are $1.35 per month. The bank wants to have a profit margin which is 10 percent of monthly costs. What monthly fee should this bank charge on its deposit accounts?A) $5.30 per monthB) $3.95 per monthC) $5.83 per monthD) $5.70 per monthE) None of the aboveAnswer: C88. A bank determines from an analysis on its deposits that account processing and other operatingexpenses cost the bank $4.45 per month. The bank has also determined that nonoperating expenses on deposits are $1.15 per month. It has also decided that it wants a profit of $.45 on its deposits.What monthly fee should this bank charge on its deposit accounts?A) $6.05B) $5.60C) $5.15D) $4.45E) None of the aboveAnswer: A89. A customer has a savings deposit for 45 days. During that time they earn $5 in interest and have anaverage daily balance of $1000. What is the annual percentage yield on this savings account?A) 0.5%B) 4.13%C) 4.07%D) 4.5%E) None of the aboveAnswer: B90. A customer has a savings account for one year. During that year they earn $65.50 in interest. For180 days they have $2000 in the account for the other 180 days they have $1000 in the account.What is the annual percentage yield on this savings account.A) 6.55%B) 3.28%C) 4.37%D) 8.73%E) None of the aboveAnswer: C91.If you deposit $1,000 into a certificate of deposit that quotes you a 5.5% APY, how much will youhave at the end of 1 year?A)$1,050.00B)$1,055.00C)$1,550.00D)$1,005.50E)None of the above.Answer: B92. A bank quotes an APY of 8%. A small business that has an account with this bank had $2,500 intheir account for half the year and $5,000 in their account for the other half of the year. How much in total interest earnings did this bank make during the year?A) $300B) $200C) $400D) $150E) None of the aboveAnswer: A93. Conditional deposit pricing may involve all of the following factors except:A) The level of interest ratesB) The number of transactions passing through the accountC) The average balance in the accountD) The maturity of the accountE) All of the above are usedAnswer: A94.Customers who wish to set aside money in anticipation of future expenditures or financialemergencies put their money inA) DraftsB) Second-party payment accountsC) Thrift DepositsD) Transaction accountsE) None of the aboveAnswer: C95. A savings account evidenced only by computer entry for which the customer gets a monthlyprintout is called:A) Passbook savings accountB) Statement savings planC) Negotiable order of withdrawalD) Money market mutual fundE) None of the aboveAnswer: B96. A traditional savings account where evidenced by the entries recorded in a booklet kept by thecustomer is called:A) Passbook savings accountB) Statement savings planC) Negotiable order of withdrawalD) Money market mutual fundE) None of the aboveAnswer: A97.An account at a bank that carries a fixed maturity date with a fixed interest rate and which oftencarries a penalty for early withdrawal of money is called:A) Demand depositB) Transaction depositC) Time depositD) Money market mutual depositE) None of the aboveAnswer: C98. A time deposit that has a denominations greater than $100,000 and are generally for wealthyindividuals and corporations is known as a:A) Negotiable CDB) Bump-up CDC) Step-up CDD) Liquid CDE) None of the aboveAnswer: A99. A time deposit that is non-negotiable but where the promised interest rate can rise with marketinterest rates is called a:A) Negotiable CDB) Bump-up CDC) Step-up CDD) Liquid CDE) None of the aboveAnswer: B100.A time deposit that allows for a periodic upward adjustment to the promised rate is called a:A) Negotiable CDB) Bump-up CDC) Step-up CDD) Liquid CDE) None of the aboveAnswer: C101.A time deposit that allows the depositor to withdraw some of his or her funds without a withdrawalpenalty is called a:A) Negotiable CDB) Bump-up CDC) Step-up CDD) Liquid CDE) None of the aboveAnswer: D102.What has made IRA and Keogh accounts more attractive to depositors recently?A) Allowing the bank to have FDIC insurance on these accountsB) Allowing the fund to grow tax free over the life of the fundC) Allowing the depositor to pay no taxes on investment earnings when withdrawnD) Requiring banks to pay at least 6% on these accounts to depositorsE) Increasing FDIC insurance coverage to $250,000 on these accountsAnswer: E103.The dominant holder of bank deposits in the U.S. is:A) The private sectorB) State and local governmentsC) Foreign governmentsD) Deposits of other banksE) None of the aboveAnswer: A104.The deposit pricing method absent of any monthly account maintenance fee or per-transaction fee is called:A) Free pricingB) Conditionally free pricingC) Flat-rate pricingD) Marginal cost pricingE) Nonprice competitionAnswer: A105.The deposit pricing method that charges a fixed charge per check or per period or both is called:A) Free pricingB) Conditionally free pricingC) Flat-rate pricingD) Marginal cost pricingE) Nonprice competitionAnswer: C106.The deposit pricing method that focuses on the added cost of bringing in new funds is called:A) Free pricingB) Conditionally free pricingC) Flat-rate pricingD) Marginal cost pricingE) Nonprice competitionAnswer: D107.Prior to Depository Institution Deregulation and Control Act (DIDMCA), banks used . This tended to distort the allocation of scarce resources.A) Free pricingB) Conditionally free pricingC) Flat-rate pricingD) Marginal cost pricingE) Nonprice competitionAnswer: E108.A customer has a savings deposit for 60 days. During that time they earn $11 and have an average daily balance of $1500. What is the annual percentage yield on this savings account?A) .73%B) 4.3%C) 4.5%D) 4.7%E) None of the aboveAnswer: C109.A customer has a savings deposit for 15 days. During that time they earn $15 and have an average daily balance of $2200. What is the annual percentage yield on this savings account?A) .68%B) 16.36%C) 16.59%D) 17.98%E) None of the aboveAnswer: D110.A bank determines from an analysis on its deposits that account processing and other operating expenses cost the bank $4.15 per month. It has also determined that its none operating expenses on its deposits are $1.65 per month. The bank wants to have a profit margin which is 10 percent of monthly costs. What monthly fee should this bank charge on its deposit accounts?A) $6.38 per monthB) $5.80 per monthC) $4.57 per monthD) $4.15 per monthE) None of the aboveAnswer: A111.A bank has $200 in checking deposits. Interest and noninterest costs on these accounts are 4%.This bank has $400 in savings and time deposits with interest and noninterest costs of 8%. This bank has $200 in equity capital with a cost of 24%. This bank as estimated that reserverequirements, deposit insurance fees and uncollected balances reduce the amount of moneyavailable on checking deposits by 10% and on savings and time deposits by 5%. What is thisbank’s before-tax cost of funds?A) 11.00%B) 11.32%C) 11.50%D) 12.00%E) None of the aboveAnswer: B112.A bank has $100 in checking deposits. Interest and noninterest costs on these accounts are 8%.This bank has $600 in savings and time deposits with interest and noninterest costs of 12%. This bank has $100 in equity capital with a cost of 26%. This bank has estimated that reserverequirements, deposit insurance fees and uncollected balances reduce the amount of moneyavailable on checking deposits by 20% and on savings and time deposits by 5%. What is the bank’s before-tax cost of funds?A) 13.05%B) 13.25%C) 15.33%D) 19.17%E) None of the aboveAnswer: A113.A bank has $500 in checking deposits. Interest and noninterest costs on these accounts are 6%.This bank has $250 in savings and time deposits with interest and noninterest costs of 14%. This bank has $250 in equity capital with a cost of 25%. This bank has estimated that reserverequirements, deposit insurance fees and uncollected balances reduce the amount of moneyavailable on checking deposits by 15% and on savings and time deposits by 4%. What is the bank’s before-tax cost of funds?A) 15.00%B) 12.75%C) 13.42%D) 15.74%E) None of the aboveAnswer: C114.A bank expects to raise $30 million in new money if it pays a deposit rate of 7%. It can raise $60 million in new money if it pays a deposit rate of 7.5%. It can raise $80 million in new money if it pays a deposit rate of 8% and it can raise $100 million in new money if it pays a deposit rate of 8.5%.This bank expects to earn 9% on all money that it receives in new deposits. What deposit rate should the bank offer on its deposits, if they use the marginal cost method of determining deposit rates?A) 7%B) 7.5%C) 8%D) 8.5%E) None of the aboveAnswer: B115.A bank expects to raise $30 million in new money if it pays a deposit rate of 7%. It can raise $60 million in new money if it pays a deposit rate of 7.5%. It can raise $80 million in new money if it pays a deposit rate of 8% and it can raise $100 million in new money if it pays a deposit rate of 8.5%.This bank expects to earn 9% on all money that it receives in new deposits. What is the marginal cost of deposits if the bank raises their deposit rate from 7 to 7.5%?A) .5%B) 7.5%C) 8.0%D) 9.5%E) 10.5%Answer: C116.Under the Truth in Savings Act, a bank must inform its customers of the terms being quoted on their deposits. Which of the following is not one of the terms listed?A) Loan rate informationB) Balance computation methodC) Early withdrawal penaltyD) Transaction limitationsE) Minimum balance requirementsAnswer: A117.Which of these Acts is attempting to address the low savings rate of workers in the U.S. by including an automatic enrollment (“default option”) in employees’ retirement accounts?A)The Economic Recovery Tax Act of 1981B)The Tax Reform Act of 1986C)The Tax Relief Act of 1997D)The Pension Protection Act of 2006E)None of the aboveAnswer: D118.Business (commercial) transaction accounts are generally more profitable than personal checking accounts, according to the textbook. Which of the following explain the reasons for this statement:A)The average size of the business transaction is smaller than the personal transactionB)Lower interest expenses are associated with commercial deposit transactionC)The bank receives more investable funds in the commercial deposits transactionD) A and BE) B and CAnswer: E。

商业银行管理彼得S罗斯英文原书第8版英语试题库Chap001

商业银行管理彼得S罗斯英文原书第8版英语试题库Chap001商业银行管理彼得S罗斯英文原书第8版英语试题库Chap001是一本经典的商业银行管理教材，该教材共分为八个章节，本文将为大家概述第一章的主要内容和考点。

第一章：商业银行与金融体系商业银行作为金融体系的核心组成部分，扮演着促进经济发展、风险管理和金融中介等多重角色。

在这一章中，我们将深入探讨商业银行的定义、功能以及与其他金融机构的关系。

1.1 商业银行简介商业银行是指一种以盈利为目的并且经营存款、贷款和其他金融服务的金融机构。

商业银行的主要特点包括：接受存款、发放贷款、支付结算、信用创造和风险管理等方面。

1.2 商业银行的功能商业银行的主要功能包括：存款业务、贷款业务、国际业务、信用业务、投资业务以及其他金融衍生品业务。

商业银行通过这些功能为个人、家庭和企业提供全方位的金融服务。

1.3 商业银行与其他金融机构的关系商业银行与其他金融机构如证券公司、保险公司和投资基金公司等之间存在紧密的联系和合作关系。

商业银行提供资金支持和资金流动性，为其他金融机构的运营提供必要的支持。

1.4 商业银行管理的挑战商业银行管理面临着多方面的挑战，包括竞争压力、市场风险、信用风险、资产负债管理等。

商业银行需要有效的管理措施和风险管理工具来应对这些挑战。

1.5 商业银行监管商业银行是金融体系中最重要的组成部分之一，其监管对于金融稳定和社会经济的发展至关重要。

监管机构通过制定监管规定、开展监督检查和提供政策指导等方式来确保商业银行行为的合规性和稳健性。

1.6 商业银行的未来发展随着科技的进步和金融创新的不断涌现，商业银行面临着新的发展机遇和挑战。

商业银行需要积极应对市场变化和技术革新，加强内部管理和业务转型，以适应金融行业的发展趋势。

总结：本章主要介绍了商业银行作为金融体系核心的定义、功能、与其他金融机构的关系，以及管理中面临的挑战和监管情况。

商业银行作为重要的金融服务提供者，在经济发展和金融稳定中发挥着重要作用。

商业银行管理彼得S.罗斯英文原书第8版-英语试题库Chap007

Chapter 7Risk Management for Changing Interest Rates: Asset-Liability Management and Duration TechniquesFill in the Blank Questions1. The ___________________ view of assets and liabilities held that the amount and types ofdeposits was primarily determined by customers and hence the key decision a bank needed to make was with the assets.Answer: asset management2. Recent decades have ushered in dramatic changes in banking. The goal of__________________ was simply to gain control of the bank's sources of funds.Answer: liability management3. The__________________________ is the interest rate that equalizes the current market price ofa bond with the present value of the future cash flows.Answer: yield to maturity (YTM)4. The __________________ risk premium on a bond allows the investor to be compensated fortheir projected loss in purchasing power from the increase in the prices of goods and services in the future.Answer: inflation5. The __________________ shows the relationship between the time to maturity and the yield tomaturity of a bond. It is usually constructed using treasury securities since they are assumed to have no default risk.Answer: yield curve6. The __________________ risk premium on a bond reflects the differences in the ease and abilityto sell the bond in the secondary market at a favorable price.Answer: liquidityplanning period.Answer: Interest-sensitive assets8. __________________________ is the difference between interest-sensitive assets andinterest-sensitive liabilities.Answer: Dollar interest-sensitive gap9. A(n)__________________________ means that the bank has more interest-sensitive liabilitiesthan interest-sensitive assets.Answer: negative interest-sensitive gap (liability sensitive)10. The bank's__________________________ takes into account the idea that the speed (sensitivity)of interest rate changes will differ for different types of assets and liabilities.Answer: weighted interest-sensitive gap11. __________________________ is the coordinated management of both the bank's assets and itsliabilities.Answer: Funds management12. __________________________ is the risk due to changes in market interest rates which canadversely affect the bank's net interest margin, assets and equity.Answer: Interest rate risk13. The__________________________ is the rate of return on a financial instrument using a 360day year relative to the instrument's face value.Answer: bank discount rate14. The __________________________ component of interest rates is the risk premium due to theprobability that the borrower will miss some payments or will not repay the loan.Answer: default risk premium15. __________________ is the weighted average maturity for a stream of future cash flows. It is adirect measure of price risk.Answer: Duration16. __________________________ is the difference between the dollar-weighted duration of theasset portfolio and the dollar-weighted duration of the liability portfolio.Answer: Duration gap17. A(n)__________________________ duration gap means that for a parallel increase in all interestrates the market value of net worth will tend to decline.Answer: positive18. A(n)__________________________ duration gap means that for a parallel increase in allinterest rates the market value of net worth will tend to increase.Answer: negative19. The __________________ refers to the periodic fluctuations in the scale of economic activity.Answer: business cycle20. The__________________________ is equal to the duration of each individual type of assetweighted by the dollar amount of each type of asset out of the total dollar amount of assets.Answer: duration of the asset portfolio21. The__________________________ is equal to the duration of each individual type of liabilityweighted by the dollar amount of each type of asset out of the total dollar amount of assets.Answer: duration of the liability portfolio22. A bank is __________________ against changes in its net worth if its duration gap is equal tozero.Answer: immunized (insulated or protected)23. The relationship between a change in an asset's price and an asset’s change in the yield or interestrate is captured by __________________________.Answer: convexity24. The change in a financial institution's __________________ is equal to difference in the durationof the assets and liabilities times the change in the interest rate divided by the starting interest rate times the dollar amount of the assets and liabilities.Answer: net worth25. When a bank has a positive duration gap a parallel increase in the interest rates on the assets andliabilities of the bank will lead to a(n) __________________ in the bank's net worth.Answer: decrease26. When a bank has a negative duration gap a parallel decrease in the interest rates on the assets andliabilities of the bank will lead to a(n)_________________________ in the bank's net worth.Answer: decrease27. U.S. banks tend to do better when the yield curve is upward-sloping because they tend to have____________ maturity gap positions.Answer: positive28.One government-created giant mortgage banking firms which have subsequently been privatizedis the .Answer: FNMA or Fannie Mae (or FHLMC or Freddie Mac)29.One part of interest rate risk is .This part of interest rate risk reflects that as interest rates rise, prices of securities tend to fall.Answer: price risk30.One part of interest rate riskis . This part of interest rate risk reflects that as interest rates fall, any cash flows that are received before maturity areinvested at a lower interest rate.Answer: reinvestment risk31.When a borrower has the right to pay off a loan early which reduced the lender’s expected rate ofreturn it is called .Answer: call risk32.In recent decades, banks have aggressively sought to insulate their assets and liability portfoliosand profits from the ravages if interest rate changes. Many banks now conduct theirasset-liability management strategy with the help of anwhich often meets daily.Answer: asset-liability committee33.is interest income from loans and investmentsless interest expenses on deposits and borrowed funds divided by total earning assets.Answer: Net interest margin (NIM)34.are those liabilities that whichmature or must be repriced within the planning period.Answer: Interest-sensitive liabilities35.Variable rate loans and securities are included as part offor banks.Answer: repriceable assetsfor banks.Answer: repriceable liabilities37.Interest sensitive assets less interest sensitive liabilities divided by total assets of the bank isknown as .Answer: relative interest sensitive gap38.Interest sensitive assets divided by interest sensitive liabilities is knownas .Answer: Interest sensitivity ratio39.is a measure of interest rate exposurewhich is the total difference in dollars between those assets and liabilities that can be repricedover a designated time period.Answer: Cumulative gap40.is the phenomenon that interest ratesattached to various assets often change by different amounts and at different speeds than interest rates attached to various liabilities,Answer: basis riskTrue/False QuestionsT F 41. Usually the principal goal of asset-liability management is to maximize or at least stabilize a bank's margin or spread.Answer: TrueT F 42. Asset management strategy in banking assumes that the amount and kinds of deposits and other borrowed funds a bank attracts are determined largely by its management.Answer: FalseT F 43. The ultimate goal of liability management is to gain control over a financial institution's sources of funds.Answer: Truewill rise.Answer: FalseT F 45. A liability-sensitive bank will experience an increase in its net interest margin if interest rates rise.Answer: FalseT F 46. Under the so-called liability management view in banking the key control lever banks possess over the volume and mix of their liabilities is price.Answer: TrueT F 47. Under the so-called funds management view bank management's control over assets must be coordinated with its control over liabilities so that asset and liability management areinternally consistent.Answer: TrueT F 48. Bankers cannot determine the level or trend of market interest rates; instead, they can only react to the level and trend of rates.Answer: TrueT F 49. Short-term interest rates tend to rise more slowly than long-term interest rates and to fall more slowly when all interest rates in the market are headed down.Answer: FalseT F 50. A financial institution is liability sensitive if its interest-sensitive liabilities are less than its interest-sensitive assets.Answer: FalseT F 51. If a bank's interest-sensitive assets and liabilities are equal than its interest revenues from assets and funding costs from liabilities will change at the same rate.Answer: TrueT F 52. Banks with a positive cumulative interest-sensitive gap will benefit if interest rates rise, but lose income if interest rates decline.Answer: TrueT F 53. Banks with a negative cumulative interest-sensitive gap will benefit if interest rates rise, but lose income if interest rates decline.Answer: FalseT F 54. For most banks interest rates paid on liabilities tend to move more slowly than interest rates earned on assets.Answer: FalseT F 55. Interest-sensitive gap techniques do not consider the impact of changing interest rates on stockholders equity.Answer: TrueT F 56. Interest-sensitive gap, relative interest-sensitive gap and the interest-sensitivity ratio will often reach different conclusions as to whether the bank is asset or liability sensitive.Answer: FalseT F 57. The yield curve is constructed using corporate bonds with different default risks so the bank can determine the risk/return tradeoff for default risk.Answer: FalseT F 58. Financial securities that are the same in all other ways may have differences in interest rates that reflect the differences in the ease of selling the security in the secondary marketat a favorable price.Answer: TrueT F 59. Financial institutions face two major kinds of interest rate risk. These risks include price risk and reinvestment risk.Answer: TrueT F 60. Interest-sensitive gap and weighted interest-sensitive gap will always reach the same conclusion as to whether a bank is asset sensitive or liability sensitive.Answer: FalseT F 61. Weighted interest-sensitive gap is less accurate than interest-sensitive gap in determining the affect of changes in interest rates on net interest margin.Answer: FalseT F 62. A bank with a positive duration gap experiencing a rise in interest rates will experience an increase in its net worth.Answer: FalseT F 63. A bank with a negative duration gap experiencing a rise in interest rates will experience an increase in its net worth.Answer: TrueT F 64. Duration is a direct measure of the reinvestment risk of a bond.Answer: FalseT F 65. A bank with a positive duration gap experiencing a decrease in interest rates will experience an increase in its net worth.Answer: TrueT F 66. A bank with a negative duration gap experiencing a decrease in interest rates will experience an increase in its net worth.Answer: FalseT F 67. Duration is the weighted average maturity of a promised stream of future cash flows.Answer: TrueT F 68. Duration is a direct measure of the price risk of a bond.Answer: TrueT F 69. A bond with a greater duration will have a smaller price change in percentage terms when interest rates change.Answer: FalseT F 70. Long-term interest rates tend to change very little with the cycle of economic activity.Answer: TrueT F 71. A bank with a duration gap of zero is immunized against changes in the value of net worth due to changes in interest rates in the market.Answer: TrueT F 72. Convexity is the idea that the rate of change of an asset's price varies with the level of interest rates.Answer: TrueT F 73. The change in the market price of an asset's price from a change in market interest rates is roughly equal to the asset's duration times the change the interest rate divided by theoriginal interest rate.Answer: TrueT F 74. U.S. banks tend to do better when the yield curve is upward-sloping.Answer: TrueT F 75. Net interest margin tends to rise for U.S. banks when the yield curve is upward-sloping.Answer: TrueT F 76. Financial institutions laden with home mortgages tend be immune to interest-rate risk.Answer: FalseT F 77. If a Financial Institution's net interest margin is immune to interest-rate risk then so is its net worth.Answer: FalseMultiple Choice Questions78.When is interest rate risk for a bank greatest?A)When interest rates are volatile.B)When interest rates are stable.C)When inflation is high.D)When inflation is low.E)When loan defaults are high.Answer: A79. A bank’s IS GAP is defined as:A)The dollar amount of rate-sensitive assets divided by the dollar amount of rate-sensitiveliabilities.B)The dollar amount of earning assets divided by the dollar amount of total liabilities.C)The dollar amount of rate-sensitive assets minus the dollar amount of rate-sensitiveliabilities.D)The dollar amount of rate-sensitive liabilities minus the dollar amount of rate-sensitiveassets.E)The dollar amount of earning assets times the average liability interest rate.Answer: C80.According to the textbook, the maturing of the liability management techniques, coupled withmore volatile interest rates, gave birth to the __________________ approach which dominates banking today. The term that correctly fills in the blank in the preceding sentence is:A) Liability managementB) Asset managementC) Risk managementD) Funds managementE) None of the above.Answer: D81.The principal goal of interest-rate hedging strategy is to hold fixed a bank's:A) Net interest marginB) Net income before taxesC) Value of loans and securitiesD) Noninterest spreadE) None of the above.Answer: A82. A bank is asset sensitive if its:A) Loans and securities are affected by changes in interest rates.B) Interest-sensitive assets exceed its interest-sensitive liabilities.C) Interest-sensitive liabilities exceed its interest-sensitive assets.D) Deposits and borrowings are affected by changes in interest rates.E) None of the above.Answer: B83.The change in a bank's net income that occurs due to changes in interest rates equals the overallchange in market interest rates (in percentage points) times _____________. The choice belowthat correctly fills in the blank in the preceding sentence is:A) V olume of interest-sensitive assetsB) Price risk of the bank's assetsC) Price risk of the bank's liabilitiesD) Size of the bank's cumulative gapE) None of the above.Answer: D84. A bank with a negative interest-sensitive GAP:A) Has a greater dollar volume of interest-sensitive liabilities than interest-sensitive assets.B) Will generate a higher interest margin if interest rates rise.C) Will generate a higher interest margin if interest rates fall.D) A and B.E) A and C.Answer: E85.The net interest margin of a bank is influenced by:A) Changes in the level of interest rates.B) Changes in the volume of interest-bearing assets and interest-bearing liabilities.C) Changes in the mix of assets and liabilities in the bank's portfolio.D) All of the above.E) A and B only.Answer: D86.The discount rate that equalizes the current market value of a loan or security with the expectedstream of future income payments from that loan or security is known as the:A) Bank discount rateB) Yield to maturityC) Annual percentage rate (APR)D) Add-on interest rateE) None of the above.Answer: B87.The interest-rate measure often quoted on short-term loans and money market securities such asU.S. Treasury bills is the:A) Bank discount rateB) Yield to maturityC) Annual percentage rate (APR)D) Add-on interest rateE) None of the aboveAnswer: A88. A bank whose interest-sensitive assets total $350 million and its interest-sensitive liabilitiesamount to $175 million has:A) An asset-sensitive gap of 525 millionB) A liability-sensitive gap of $175 millionC) An asset-sensitive gap of $175 millionD) A liability-sensitive gap of $350 millionE) None of the above.Answer: C89. A bank has a 1-year $1,000,000 loan outstanding, payable in four equal quarterly installments.What dollar amount of the loan would be considered rate sensitive in the 0 – 90 day bucket?A)$0B)$250,000C)$500,000D)$750,000E)$1,000,000Answer: B90. A bank has Federal funds totaling $25 million with an interest rate sensitivity weight of 1.0.This bank also has loans of $105 million and investments of $65 million with interest ratesensitivity weights of 1.40 and 1.15 respectively. This bank also has $135 million ininterest-bearing deposits with an interest rate sensitivity weight of .90 and other money market borrowings of $75 million with an interest rate sensitivity weight of 1.0. What is the weighted interest-sensitive gap for this bank?A) $50.25B) $-15C) -$50.25D) $34.25E) None of the aboveAnswer: A91. A bond has a face value of $1000 and five years to maturity. This bond has a coupon rate of 13percent and is selling in the market today for $902. Coupon payments are made annually on this bond. What is the yield to maturity (YTM) for this bond?A) 13%B) 12.75%C) 16%D) 11.45%E) Cannot be calculated from the information givenAnswer: C92. A treasury bill currently sells for $9,845, has a face value of $10,000 and has 46 days to maturity.What is the bank discount rate on this security?A) 12.49%B) 12.13%C) 12.30%D) 2%E) None of the aboveAnswer: B93.The _______________ is determined by the demand and supply for loanable funds in themarket. The term that correctly fills in the blank in the preceding sentence is:A) The yield to maturityB) The banker's discount rateC) The holding period returnD) The risk-free real rate of interestE) The market rate of interest on a risky loanAnswer: D94. A bank with a positive interest-sensitive gap will have a decrease in net interest income wheninterest rates in the market:A) RiseB) FallC) Stay the sameD) A bank with a positive interest-sensitive gap will never have a decrease in net interest incomeAnswer: B95.The fact that a consumer who purchases a particular basket of goods for $100 today has to pay$105 next year for the same basket of goods is an example of which of the following risks:A) Inflation riskB) Default riskC) Liquidity riskD) Price riskE) Maturity riskAnswer: A96. A bank has Federal Funds totaling $25 million with an interest rate sensitivity weight of 1.0.This bank also has loans of $105 million and investments of $65 million with interest ratesensitivity weights of 1.40 and 1.15 respectively. This bank also has $135 million ininterest-bearing deposits with an interest rate sensitivity weight of .90 and other money marketborrowings of $75 million with an interest rate sensitivity weight of 1.0. What is the dollar interest-sensitive gap for this bank?A) $50.25B) $-15C) -$50.25D) $34.25E) None of the aboveAnswer: B97.If a bank has a positive GAP, an increase in interest rates will cause interest income to__________, interest expense to__________, and net interest income to __________.A)Increase, increase, increaseB)Increase, decrease, increaseC)Increase, increase, decreaseD)Decrease, decrease, decreaseE)Decrease, increase, increaseAnswer: A98.If a bank has a negative GAP, a decrease in interest rates will cause interest income to__________, interest expense to__________, and net interest income to __________.A)Increase, increase, increaseB)Increase, decrease, increaseC)Increase, increase, decreaseD)Decrease, decrease, decreaseE)Decrease, decrease, increaseAnswer: E99. A treasury bill currently sells for $9,845, has a face value of $10,000 and has 46 days to maturity.What is the yield to maturity on this security?A) 12.49%B) 12.13%C) 12.30%D) 2%E) None of the aboveAnswer: A100.The Third National Bank of Edmond reports a net interest margin of 5.83%. It has total interest revenues of $275 million and total interest expenses of $210 million. What does this bank's earnings assets have to be?A) $4717 millionB) $3602 millionC) $1115 millionD) $3.790 millionE) None of the aboveAnswer: C101.The Third National Bank of Edmond reports a net interest margin of 5.83%. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent next year. What is this bank's new net interest margin?A) 5.83%B) 7.09%C) 3.59%D) 5.38%E) 7.80%Answer: D102.Which of the following is part of funds management?A) The goal of funds management is simply to gain control over the bank's funds sources.B) Since the amount of deposits a bank holds is determined largely by its customers, the focusof the bank should be on managing the assets of the bank.C) Management of the bank's assets must be coordinated with management of the bank'sliabilities.D) The spread between interest revenues and interest expenses is unimportant.E) None of the aboveAnswer: C103.If Fifth National Bank's asset duration exceeds its liability duration and interest rates rise, this will tend to __________________ the market value of the bank's net worth.A) LowerB) RaiseC) StabilizeD) Not affectE) None of the aboveAnswer: A104.If Main Street Bank has $100 million in commercial loans with an average duration of 0.40 years;$40 million in consumer loans with an average duration of 1.75 years; and $30 million in U.S.Treasury bonds with an average duration of 6 years, what is Main Street's asset portfolioduration?A) 0.4 yearsB) 1.7 yearsC) 2.7 yearsD) 4.1 yearsE) None of the aboveAnswer: B105. A bank has an average asset duration of 4.7 years and an average liability duration of 3.3 years.This bank has $750 million in total assets and $500 million in total liabilities. This bank has:A) A positive duration gap of 8.0 years.B) A negative duration gap of 2.5 years.C) A positive duration gap of 1.4 years.D) A positive duration gap of 2.5 years.E) None of the above.Answer: D106. A bank has an average asset duration of 1.15 years and an average liability duration of 2.70 years.This bank has $250 million in total assets and $225 million in total liabilities. This bank has:A) A negative duration gap of 1.55 years.B) A positive duration gap of 1.28 years.C) A negative duration gap of 3.85 years.D) A negative duration gap of 1.28 years.E) None of the above.Answer: D107.The duration of a bond is the weighted average maturity of the future cash flows expected to be received on a bond. Which of the following is a true statement concerning duration?A) The longer the time to maturity, the greater the durationB) The higher the coupon rate, the higher the durationC) The shorter the duration, the greater the price volatilityD) All of the above are trueE) None of the above are trueAnswer: A108. A bond has a duration of 7.5 years. Its current market price is $1125. Interest rates in the market are 7% today. It has been forecasted that interest rates will rise to 9% over the nextcouple of weeks. How will this bank's price change in percentage terms?A) This bond's price will rise by 2 percent.B) This bond's price will fall by 2 percent.C) This bond's price will fall by 14 .02 percentD) This bond's price will rise by 14.02 percentE) This bond's price will not changeAnswer: C109. A bank has an average asset duration of 5 years and an average liability duration of 3 years.This bank has total assets of $500 million and total liabilities of $250 million. Currently, market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what is this bank's change in net worth?A) Net worth will decrease by $31.81 millionB) Net worth will increase by $31.81 millionC) Net worth will increase by $27.27 millionD) Net worth will decrease by $27.27 millionE) Net worth will not change at allAnswer: B110. A bank has an average asset duration of 5 years and an average liability duration of 3 years.This bank has total assets of $500 million and total liabilities of $250 million. Currently, market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what is this bank's duration gap?A) 2 yearsB) –2 yearsC) 3.5 yearsD) –3.5 yearsE) None of the aboveAnswer: C111. A bank has an average asset duration of 5 years and an average liability duration of 9 years.This bank has total assets of $1000 million and total liabilities of $850 million. Currently,market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's change in net worth?A) Net worth will decrease by $50.47 millionB) Net worth will increase by $50.47 millionC) Net worth will decrease by $240.95 millionD) Net worth will increase by $240.95 millionE) Net worth will not change at allAnswer: B112. A bank has an average asset duration of 5 years and an average liability duration of 9 years.This bank has total assets of $1000 million and total liabilities of $850 million. Currently,market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's duration gap?A) –4 yearsB) 4 yearsC) 2.65 yearsD) –2.65 yearsE) 12.65 yearsAnswer: D113. A bank has $100 million of investment grade bonds with a duration of 9.0 years. This bank also has $500 million of commercial loans with a duration of 5.0 years. This bank has $300 million of consumer loans with a duration of 2.0 years. This bank has deposits of $600 million with a duration of 1.0 years and nondeposit borrowings of $100 million with an average duration of .25 years. What is this bank's duration gap? These are all of the assets and liabilities this bank has.A) This bank has a duration gap of 14.75 yearsB) This bank has a duration gap of 15.03 yearsC) This bank has a duration gap of 3.55 yearsD) This bank has a duration gap of 3.75 yearsE) This bank has a duration gap of 5.15 yearsAnswer: D114.Which of the following statements is true concerning a bank's duration gap?A) If a bank has a positive duration gap and interest rates rise, the bank's net worth will declineB) A bank with a positive duration gap has a longer average duration for its assets than for itsliabilitiesC) If a bank has a zero duration gap and interest rates rise, the bank's net worth will not changeD) If a bank has a negative duration gap and interest rates rise, the bank's net worth will increaseE) All of the above are true statementsAnswer: E115. A bank has an average duration for its asset portfolio of 5.5 years. This bank has total assets of $1000 million and total liabilities of $750 million. If this bank has a zero duration gap, what must the duration of its liabilities portfolio be?A) 7.33 yearsB) 4.125 yearsC) 7.5 yearsD) 5.5 yearsE) None of the aboveAnswer: A116. A bond has a face value of $1000 and coupon payments of $80 annually. This bond matures in three years and is selling for $1000 in the market. Market interest rates are 8%. What is this。

金融工程参考书目

金融工程参考书目一、数学与统计学知识1．《概率论与数理统计》教材自选2．掌握一至两个统分析软件，如SAS、TSP、SPSS、Eviews、Gauss等二、经济学类1．《经济学》（上、下）；斯蒂格利茨著；中国人民大学出版社。

F091.3/H12 浦2．《微观经济学：现代的观点》；H•范里安著；上海三联出版社。

3．《当代资产阶级经济学主要流派》；胡代光、厉以宁编著；商务印书馆。

4．《当代西方经济学说》；刘涤源、谭崇台主编；武汉大学出版社。

5．《宏观经济学》；多恩不什著；中国人民大学出版社。

6．《发展经济学》；吉利斯、波金斯等著；中国人民大学出版社。

7．《计量经济模型与经济预测》；罗伯特S•平荻克等著；机械工业出版社。

F224.0/H64浦8．《应用经济学研究方法论》；唐•埃思里奇著；经济科学出版社。

9．《新制度经济学》；思拉恩•埃格特森；商务印书馆。

10．《微观经济学新论》；梁东黎；南京大学出版社。

三、管理学类1．《管理学》；斯蒂芬•P•罗宾斯；中国人民出版社。

C93/H31 总馆2．《战略管理》；弗雷德•R•戴维；经济科学出版社。

3．《人力资源管理》；加里•德斯勒；中国人民出版社。

4．《竞争优势》；迈克尔•波特。

5．《竞争战略》；迈克尔•波特。

四、财务与会计类1．《公司理财〉；斯蒂芬•A•罗斯；机械工业出版社。

2．《财务成本管理》；CPA考试指定教材。

3．《管理会计——规划、控制与决策观念》；Ray H•Garrison著、4．《应用公司理财》；阿里瓦斯•达摩达兰著；机械工业出版社。

F275/H144 浦5．《公司财务管理》（上、下）；D•R•埃莫瑞；中国人民大学出版社。

F275/H144/v.1-2 文6．《投资估价——评估任何资产价值的工具和技术》；Aswath Damodaran著；清华大学出版社。

7．《价值评估——公司价值的衡量与管理》；T•Copeland；中国大百科出版社。

F276.6/H58 （商院图书馆）8．《经营透视：企业分析与评价》；K•帕利普；东北财经大学出版社。

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Profitability Ratios: A Surrogate for Stock Values (1)
Profitability Ratios (2)
Earnings spread=
Total interest income Total interest expense Total earning assets Total interest-bearing liabilities
Return on Assets and Its principal Components
PLUS
Net Noninterest Margin
PLUS
LESS
Special Transactions affecting its net income
Net Interest Margin
ROA
What a Breakdown of Profitability Measures Can Tell Us
Profitability Ratios (3)
Return on equity capital –ROE 资本利润率 Return on assets –ROA 资产利润率 Net interest margin 净利息收益率（净息差） Net Noninterest margin净非利息收益率 Net bank operating margin 净经营收益率 Earnings per share (EPS)每股收益率 Earrings spread 净利息差（净利差）
20:1
10%
20%
30%
40%
ROE
Net income Total operationg revenue Total asset Total operationg revenue Total asset Total equity captial Net profit m arg in Asset utilization ratio Equity multiplier
经营杠杆系数 Degree of Operating Leverage，DOL
年份 1998 营业额 2400 营业额增长率变动成本 1440 固定成本 800 营业利润 160 利润增长率
1999
2000
2600
3000
8%
15%
1560
1800
800
800
240
400
50%
67%
Interest rate risk Transaction risk Compliance risk
Operational risk
Legal risk Reputational risk
Reputational risk
Reputational risk
Strategic risk
Credit Risk
Careful use of financial leverage. Careful use of operating leverage from fixed
assets. Careful control of operating expenses so that more dollars of sales revenue become net income. Careful management of the asset portfolio to meet liquidity needs while seeking the highest returns from any assets acquired. Careful control of exposure to risk so that losses don’t overwhelm income and equity capital.
我国商业银行监管指标（2016第1、2季度)
Return on Eqห้องสมุดไป่ตู้ity and Its principal Components
ROE=Net Income/Total Equity Capital
ROA=Net Income/Assets
Equity Multiplier=Total Assets/Equity Capital
=净利润率 ×资产利用率×股权资本乘数
The net profit margin(NPM): reflects the
effectiveness of expense management and service pricing policies. The degree of asset utilization(AU): reflects the portfolio management policies, especially the mix and yield on assets. The equity multiplier(EM): reflects the leverage or financing policies.
The probability that some of the bank’s assets will
decline in value and perhaps become worthless. Credit Risk Measures
Nonperforming assets/Total Loans and leases Net Charge-Offs/Total Loans and leases
我国衡量商业银行效益性指标
资产利润率
资本利润率
净息差
＝（利息净收入+债券投资利息收入）/ 生息资产平均余额 × 100% × 折年系数非利息收入占比＝（手续费及佣金净收入 + 其他业务收入 + 不含债券投资利息收入的投资收益） / 营业收入 × 100% 成本收入比＝（营业支出 - 营业税金及附加） / 营业收入 × 100%
Net Profit Margin=Net Income/Total Operating Revenue
Asset Utilization=Tota l Operating Revenue/Total Assets
Net income Total asset ROE Total asset Total equity captial ROA Equity multiplier
decline
Value of Bank’s Stock if Earnings Growth is Constant
Where: D1 is the expected dividend in the first period;
r is the rate of discount reflecting the perceived level of risk; and g is the constant growth rate of the bank’s dividends.
9th Edition Peter S. Rose
CHAPTER THREE
MEASURING AND EVALUATING THE PERFORMANCE OF BANKS
Key topics
Stock values and profitability ratios Measuring credit, liquidity, and other risks
Introduction
In today world, bankers and their competitors are
under great pressure to perform well all the time. The success or lack of success of these institutions in meeting the expectations of others is usually revealed by a careful study of their financial statements. This chapter centers on the most important dimensions of performance ——profitability and risk, that is , to maximize the value of the shareholders’ wealth invested in the firm at an acceptable level of risk.
Measuring Risk in Banking
Risks Encountered by Financial Institutions
Basel Committee on Banking Supervision Federal Reserve System Comptroller of the Currency
Ratio of Total Assets to Total Equity Capital Accounts
ROE with an ROA of: 0.5% 2.5% 5% 7.5% 1.0% 5% 10% 15% 1.5% 7.5% 15% 22.5% 2.0% 10% 20% 30%
5:1 10:1 15:1
Provision for Loan Losses/Total Loans and leases or
relative to equity capital Allowance for Loan Losses/Total Loans and leases or relative to equity capital Nonperforming assets/Equity capital Total Loans/Total Deposits

3 商业银行管理(罗斯)

商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap010