True and fales

1) Legal risk refers to the risk of indirect loss resulting in adequate or failed internal
perfomence of people or external events
A: true
B:false
2) Commercial banks extend credit to only one type of borrowers for the same purpose
A: true
B: false
3) Its extremely difficult to asses individual asset quality using aggregate quality data
A: true
B: false
4) Banks do not make internationally bad loans , loans go bad as result of many factors
A: true
B: false
5) Bank liquidity is to banks, capacity to acquire immediately available funds at
reasonable price
A: true
B: false
6) Depository institutions hold deposits at the federal reserve in part because the federal
reserve impose legal reserve requirements and deposit balances qualify as legal
reserve
A: true
B: false
7) Deposits are dominant asset at most depository institutions the also generate the
largest share of operating income and represent the institutions greatest risk exposure
A: true
B: false
8) Experienced lending organizations have required expertise ,experience, and customer
focus
A: true
B: false
9) Net interest income means interest income minus interest expense
A: true
B:false
10) Banks always make loans only
A: true
B: false
Banks are financial institutions that accept deposits and make loans
A: true
 B: false
11) Type of banks are two only
A: true
B: false
12) New borrowings include brokerage fees and reserve
A: true
B: false
13) Financial crises started in 2007-2009
A: true
B: false

Circle
1) ------ is financial institution licensed to receive deposits and make loans
A: business
B: government
C: organization
D: banks
2) The main objectives of bank management is to------------

A:Develop their services

B:Maximize profit

C:Compete with other banks

3) Among primary functions of commercial banks include-----------

A:print currency
B: monitory policy
C:accept deposits
4) -------- are dominant asset at most depository institutions
A: loans
B: buildings
C: management
5) Banks can acquire liquidity in
A:selling assets
B: new borrowing
C: new stock issues
D: all above
6) ---in banking refers to the ability of bank to meet its financial obligations as they
come due
A:finace
B: liquidity
 C: liquidity
7) ---------- is the risk suffering by the lenders when borrowers do not returned back
the borrowed money
A: credit risk
B: market risk
C: legal risk
8) ---- is the monitory institution which fully controls the production circulation and
supply of money in the market
A: commercial banks
B: insurance companies
C:central bank
9) ---------- refers to the actions undertaking by nationa,s central bank to control
money supply to achieve macroeconomic goals that promote sustainable
economic growth
A:bank policy
B: economic recession
C:monitory policy
10) ------are most heavily regulated financial institution in the USA
A: depository institution
B: business entities
C: public authorities
11) Central bank generate
A: money
B: goods
C: services
D: other valuable things
C:Central bank responsible
A: money issuing
B: monitory control
C: all above
Direct questions
1) what is bank management?
2) what is super regional bank?
3) what is commercial bank?
4) what are the objectives of bank management?
5) describe the net interest income?