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FIN 4324 EXAM 1 (2024) LATEST QUESTIONS WITH 100% CORRECT ANSWERS!!
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FIN 4324 EXAM 1 (2024) LATEST QUESTIONS WITH 100% CORRECT ANSWERS!!
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FIN 4324 EXAM 1(2024) LATEST
QUESTIONS WITH
100% CORRECT
ANSWERS!!
FIN 4324
Evatee [Date] FIN 4324
,FIN 4324 EXAM 1 (2024) LATEST QUESTIONS
WITH 100% CORRECT ANSWERS!!
A bank has total interest income of $67 million and total noninterest income of
$14 million. This bank has total interest expenses of $35 million and total
noninterest expenses (excluding PLL) of $28 million. Its provision for loan losses
is $6 million and its taxes are $5.
What is this bank's net income?
a)$7
b-$14
c)$18
d)$32
e)None of the options are correct. Answer -
The U.S government wants to prevent money laundering by drug cartels. To
promote this goal, *they have asked banks to report* any cash deposits greater
than $10,000 to the government. Which of the following roles is the bank
performing?
a)the intermediation role
b)the payment role
c)the risk management role
d)the guarantor role
e)the policy role Answer - the policy role
Which of the following types of banks would most likely *offer the largest*
number of financial services virtually?
,a)a retail bank
b)a community bank
c)a commercial bank
d)a universal bank
e)an international bank Answer - a universal bank
The Edmond Wine and Cheese shop wants to buy 30 cases of French
champagne on credit. Bank of America writes a letter of credit stating that the
Edmond Wine and Cheese shop is a good risk and that *if they do not pay off
the loan, Bank of America will*. Which of the following roles is the bank
performing?
a)the intermediation role
b)the payments role
c)the risk management role
d)the guarantor role
e)the policy role Answer - the guarantor role
Included among leading structural trends in the U.S. banking industry in recent
years are:
a)The number of independently owned banks has declined.
b)the average size of individual banking firms has increased
c)entry across state lines from neighboring states has increased.
d)the merger among some of the largest banks in the industry.
e)all of the options are correct. Answer - all of the options are correct.
Chandriga Suppiah has opened a Roth IRA with North Carolina State Bank and
plans on making regular contributions to the account until she retires. Which of
the following services is Chandriga taking advantage of?
, a)getting a consumer loan
b)getting financial advice
c)managing cash
d)getting venture capital service
e)buying a retirement plan Answer - buying a retirement plan
Banks perform the indispensable task of:
a)creating money without loans
b)absorbing the excess liquidity created by other financial institutions
c)intermediating between surplus-spending parties and deficit-spending
parties.
d)issuing risky deposits
e)none of the options are correct Answer - intermediating between surplus-
spending parties and deficit-spending parties.
Major trends affecting the performance of financial firms today include all of
these except:
a)greater product-line diversification
b)reduced branching
c)geographic diversification
d)convergence
e)increasing automation Answer - reduced branching
The Bartholemew Bakery receives a lot of payments in cash. They deposit it in
their local bank who invests the money in an interest bearing account until it is
needed to pay bills. Which of the financial service banks offer, is the
Bartholemew bakery taking advantage of?
a)getting a consumer loan
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