EASY

2 PTS EACH
PROVIDE THE FORMULA
FOR TIE RATIO.
FACT.
TIE RATIO IS A LEVERAGE RATIO.
AND LEVERAGE RATIO AIMS TO
DETERMINE COMPANY’S CAPITAL
STRUCTURE AND WHETHER THE
COMPANY IS MORE RELIANT ON
BORROWINGS (DEBT) OR
SHAREHOLDER CAPITAL (EQUITY)
PROVIDE THE FORMULA
FOR CURRENT RATIO
PROVIDE THE FORMULA
FOR BEP
FACT.
BEP RATIO IS A PROFITABILITY
RATIO. PROFITABILITY RATIO AIMS
TO PROVIDE A QUANTITATIVE IDEA
ON HOW IS THE COMPANY DOING.
PROVIDE THE FORMULA
FOR CBTL RATIO.
FACT.
CBLT RATIO IS A LIQUIDITY
RATIO(LR] AND LIQUIDITY RATIO’S
DENOMINATOR ARE ALL
LIABILITIES BECAUSE LR WANTS TO
MEASURE THE CAPACITY OF A FIRM
TO PAY ITS DEBTS THROUGH ITS
ASSETS.
 PROVIDE THE FORMULA
FOR NET DEBT TO EQUITY
RATIO.
 PROVIDE THE FORMULA
FOR NET PROFIT MARGIN.
PROVIDE THE SHORT
FORMULA FOR ROE.
BEP STANDS FOR
.
 PROVIDE THE ONE
POSSIBLE NUMERATOR OF
QUICK RATIO.
 OPERATING CASH FLOW
TO CURRENT LIABILITIES’
NUMERATOR IS
.
TRUE OR
FALSE
3 PTS EACH
 TRUE OR FALSE

LETTER OF CREDIT IS A
LIABILITY ACCOUNT IN A
BANK STATEMENT
 TRUE OR FALSE

BANKER’S ACCEPTANCE IS
A “DEPOSIT” LIABILITY OF
A BANK
 TRUE OR FALSE

RETAIL CERTIFICATE OF
DEPOSIT IS AN ASSET OF A
BANK.
 TRUE OR FALSE
ROA CAN BE SOLVED BY
MULTIPLYING PROFIT
MARGIN TO ASSET
TURNOVER.
 TRUE OR FALSE

CREDIT UNIONS OFFER THEIR

MEMBERS CREDIT CARDS,
CHECKING ACCOUNTS, HIGH-
INTEREST LOANS, AND HIGH-
INTEREST SAVINGS ACCOUNTS.
MODERATE
4 PTS EACH
BESIDES COMMERCIAL
AND INDUSTRIAL, REAL
ESTATE AND OTHER
LOANS, WHAT IS THE
OTHER MAJOR TYPE OF
LOAN
 THESE ARE BANKS THAT
OFFER THE ENTIRE RANGE
OF BANKING SERVICES,
SUCH AS CHECKING AND
SAVINGS ACCOUNTS, LOANS,
AND FINANCIAL ADVICE.
THESE ARE FINANCIAL
INSTITUTIONS THAT
PROVIDE LOANS
SPECIFICALLY FOR
BUYING A HOME OR
BUSINESS.
 THESE ARE FINANCIAL
INSTITUTIONS THAT HOLD
CUSTOMERS’ FUNDS IN
INTEREST-BEARING
ACCOUNTS AND INVEST
MAINLY IN MORTGAGE
LOANS.
 THESE ARE OTHER TYPES OF
FINANCIAL ORGANIZATIONS THAT
BUY STOCKS AND BONDS FROM
COMPANIES AND INDIVIDUALS AND
SELL STOCKS AND BONDS
AFTERWARDS, AND THEY OFFER A
WIDE RANGE OF FINANCIAL
SERVICES.
DIFFICULT
5 PTS EACH
RESERVES AT A FEDERAL
GOVERNMENT MAY ALSO
BE CALLED AS
.
 ASSETS OF A BANK INCLUDE
CASH AND BALANCES DUE FROM
OTHER DEPOSITARY
INSTITUTIONS, INVESTMENT
SECURITIES, ,
UNEARNED ALLOWANCE FOR
LOAN AND LEASE LOSSES, AND
OTHER ASSETS.
 THE GIVEN ITEMS INCLUDE
PROFIT MARGIN, ASSET
TURNOVER AND DEBT RATIO,
IF ALL OF THESE ITEMS
SHALL BE UTELIZED, THE
RESULT IS .