1. Financial intermediaries perform 5 main functions, they are:

a)Pool savings, safekeeping & accounting, provide liquidity, diversify risk and process equity transactions

b)Pool savings, safekeeping & accounting, provide leverage, diversity risk and process information

c)Pool savings, safekeeping & accounting, provide liquidity, diversify risk and collect & process information services

d)Pool savings, safekeeping of precious metals, provide liquidity, diversify risk and collect & process information services

2.Banks balance sheets consist of assets, liabilities and capital, what are the 4 largest sources of commercial bank assets:

a.Mortgage-backed securities, consumer loans, equity investments and cash

b.Cash, securities, real estate and loans

c.Stocks, bonds, loans and cash

d. C&I loans, consumer loans, stocks and car loans

3. Three broad measures of bank profitability are:

a.NIM, NII and ROA

b. ROE, NII and net worth

c. ROA, ROE and NII

d. EBITDA, ROTC and EPS

4. Select the 3 measures of capital ratios disclosed by US banks:

a.RWAs, GAAP and IFRS

b.Assets, Liabilities and Capital

c.Net Worth, Liquidity and Solvency

d.RWAs, CECL and the Dividend Discount Model