A smaller bank specializing in consumer-oriented banking services is called a(n) __________________.

A. community bank B. money center bank C. central bank D. FDIC E. superregional bank

7. The difference between a commercial banks average rate earned on loans and its average rate paid on deposits is called the:

A. charge-off rate. B. net operating income. C. return on assets. D. money market rate. E. interest rate spread.

8. Measured by asset size, _________________________ represent the largest group of depository institutions.

A. Finance companies B. Credit unions C. Commercial banks D. Savings institutions E. Check-cashing stores

9. ___________ is not among the advantages of international expansion by a bank?

A. Better diversification of risk B. Lowering of the regulatory burden C. Improved economies of scale D. Higher monitoring and information collection costs E. Broader, and possibly cheaper, access to funds

10. Customer deposits are a(n) _______________ item on a commercial banks balance sheet.

A. equity B. liability C. financial asset D. non-financial asset E. cash asset