Bank Assets Quiz

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Each of the following falls into the category of bank assets except:

loans

investment securities.

. demand deposits. (correct)

. cash and due from banks.

. Banks generate their largest portion of income from:

loans (correct)

. short-term investments.

demand deposits

trading account gains & fees

Each of the following typically falls into the category of loans except:

real estate

. agricultural

consumer.

municipal. (correct)

Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?

. Loan and lease loss allowance and unearned income is subtracted from gross loans. Signup and view all the answers

An example of a contra-asset account is:

loan and lease loss allowance Signup and view all the answers

The noncash expense item on a bank's Report of Income designed to shelter a bank's current earnings from taxes and to help prepare for bad loans is called:

. provision for possible loan losses. Signup and view all the answers

A financial institution's bad-debt reserve, as reported on its balance sheet, is called:

allowance for possible loan losses Signup and view all the answers

When a bank serves as a security dealer for certain kinds of securities (mainly federal, state, and local government obligations) the value of these securities is usually recorded in what account on a bank's Report of Condition?

C. Trading account assets Signup and view all the answers

___________ is calculated by deducting noninterest expense and provision for loan losses from noninterest income

E. Net noninterest income Signup and view all the answers

The account that is built up by annual noncash expense deductions and is subtracted from Gross Loans on the Report of Condition is:

D. allowance for possible loan losses. Signup and view all the answers

Bank Assets Quiz

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Questions and Answers

Each of the following falls into the category of bank assets except:

. Banks generate their largest portion of income from:

Each of the following typically falls into the category of loans except:

Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?

An example of a contra-asset account is:

The noncash expense item on a bank's Report of Income designed to shelter a bank's current earnings from taxes and to help prepare for bad loans is called:

A financial institution's bad-debt reserve, as reported on its balance sheet, is called:

When a bank serves as a security dealer for certain kinds of securities (mainly federal, state, and local government obligations) the value of these securities is usually recorded in what account on a bank's Report of Condition?

___________ is calculated by deducting noninterest expense and provision for loan losses from noninterest income

The account that is built up by annual noncash expense deductions and is subtracted from Gross Loans on the Report of Condition is:

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