1. When John Doe opened an account that allows him to write checks to pay for his groceries and other purchases, the bank is providing the service of:

A) Currency exchange

B) Discounting commercial notes

C) Safekeeping of valuables

D) Offering demand deposits

QUESTION 15

1. Which of the following would be the most important consideration for locating a new

branch bank?

A) Large populations of above average age

B) Few shops and a rural farm setting

C) A rapidly increasing number of facilities operated by competitors

D) Below average population density

QUESTION 13

1. There are several reasons that banks are regulated. If you are worried that you might not get a loan from the National Bank of South Carolina because of the way you look, which reason for regulating banks might this be an example of?

A) To protect the safety of the publics savings

B) To control the supply of money and credit

C) To ensure equal opportunity and fairness in the publics access to credit

D) To avoid concentration of power in the hands of a few individuals and institutions

QUESTION 10

1. First federal decides to make a home mortgage to one of its clients. Which account on the balance sheet would this mortgage be included in?

A) Cash and Due from Depository Institutions

B) Investment Securities

C) Trading Account Assets

D) Gross Loans

5 points

QUESTION 6

1. Which of the following is not a guideline for liquidity managers of banks?

A) The liquidity manager must only keep track of the activities of some and not all departments of the bank

B) The liquidity manager must know in advance (if possible) the plans of major creditors and depositors

C) The liquidity manager should make sure the bank has clear priorities and objectives for liquidity management

D) The liquidity manager must analyze the liquidity needs of the bank on a

continuous basis