7. How does a NOW account differ from a demand deposit? 10. What are the major categories of off-balance-sheet activities? 15. A security analyst calculates the following ratios for two banks. How should the analyst evaluate the financial health of the two banks? 20. How does a banks asset size affect its financial ratios?

1. Bank A	Bank B
   Return on equity	22%	24%
   Return on assets	2%	1.5%
   Equity multiplier	11	16
   Profit margin	15%	14%
   Asset utilization	13%	11%
   Spread	3%	3%
   Interest expense ratio	35%	40%
   Provision for loan-loss ratio	1%	4%