1. Banks generate their largest portion of income from: Loans. Short-term investment. Demand deposits. Long-term...
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Finance
1. Banks generate their largest portion of income from:
Loans.
Short-term investment.
Demand deposits.
Long-term investments.
Certificates of deposit.
unanswered
2. A financial institution's bad-debt reserve, as reported on its balance sheet, is called:
Unearned income or discount
Allowance for possible loan losses
Intangible assets
Customer liability on acceptances
None of the above
unanswered
3. Banks depend heavily upon borrowed funds supplied by customers with little owners' capital invested. This means that banks make heavy use of:
Financial leverage
Capital restructuring
Operating Leverage
Margin borrowing
None of the above.
unanswered
4. When a loan is considered uncollectible, the bank's accounting department will write (charge) it off the books by reducing the ______ and the accounts. Which choice below correctly fills in the blank in the preceding sentence?
PLL and Gross Loans
ALL and Net Loans
ALL and Gross Loans
PLL and Net Loans
None of the above.
unanswered
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