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31) Midlands National is negotiating to sell a Jumbo CD in the amount of $25 million to Warren Buffet. Given reserve requirements, how much of this $25 million would be available to be lent out? A) $ 25 million B) $22.5 million C) $27.5 million D) $0 2) Which of these transactions would affect the bank's required reserves? A) You sell your car to your roommate for $4,000 . Your roommate gives you a check drawn on WesBanco where B) You receive a stimulus payment of $1,900 from the United States Treasury that is direct deposited into your checking account C) Neither of these would affect required reserves. D) Both of these affect required reserves. =) Which of these assets is rate sensitive in a 6-month time frame A) Fed funds sold B) A one year Treasury Bill C) A 5-year U.S. Treasury Note with semiannual coupon payments D) None of the above First Union Band & Trust has 4% 30-year fixed rate mortgage on its books that now has 27 years to maturity. Fixed - rate mortgage rates have recently plunged to historically low levels below 2%. Is this asset rate sensitive in a one year time frame? A) No, it is a fixed rate asset for another 27 years. B) No, but it will be over a 5 year time frame. C) Yes, because of the embedded option for the mortgage holder to refinance D) Yes, because mortgages are always to be considered rate sensitive assets Capital Requirements for U.S. Banks are specified by: A) The Sarbanes Oxley Act C) State Regulators B) The Dodd Frank Act D) Agreements Reached in the Basel Conferences

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