33 The is the banks Ner Income divided by Total Assets A Net

33) The is the bank\'s Ner Income divided by Total Assets A) Net interest margin B) ROA (Return on Assets) C) Net interest income D) ROE (Retum on Equity) 34) Which of the following parts of the Federal Reserve has the greatest effect on the U.S. economy? A) Federal Advisory Council B) Federal Open Market Committee C) Federal Reserve bank presidents D) Member banks of the Federal Reserve 35) A highly liquid asset is one that A) loses its value B) appreciates over time C) can be quickly turned into a medium of exchange without loss D) cannot be used in financial transactions )Bonds that make no periodic (annual) interest payments but are sold at a discount, with their face values paid at maturity are A) zero-coupon bonds B) coupon securities C) perpetuities D) tax-exempts 37) A bond that is issued by a state or local govemment and is exempt from federal income tax is a A) Government bond B) Municipal bond C) Corporate bond D) Mortgage 38) At one time in the U.S, banks faced govenment-imposed maximum rates on their deposits accounts. These rate restrictions were known as: A) BIF B) Glass-Steagall C) Regulation Q D) Regulation Y 39) A package of nonkraded financial instruments can be transformed into a traded financial instrument through the process of A) Collateralization B) Repurchasing C) Underwriting D) Securitization

Solution

33)

Correct answer is (b)

Total income is divided by the total assets to reach the Return on assets.

34)

Correct answer is (B)

Federal Open Market Committee is important organ of Fed that decides on Federal Fund rate.

35)

Right answer is (C)

Liquid asset can be converted into cash without losing its value.

36)

Right answer is (a)

37)

Right answer is (B)