金融市场与机构Madura第九版题库ch20.doc

Chapter 20 Bank Performance 1. A(n) ________ in interest rates could reduce a commercial bank’s expected cash flows because the interest paid on deposits may _______________ than the interest earned on loans and investments. A) increase; increase to a greater degree B) increase; increase to a lesser degree C) decrease; increase to a greater degree D) decrease; increase to a lesser degree ANSWER: A 2. Even if other external forces (such as interest rates) are unchanged, a commercial bank’s expected cash flows can change in response to a change in its management skills. A) True B) False ANSWER: A 3. The risk premium on a commercial bank is __________ related to economic growth and ____________ related to management skills. A) positively; negatively B) positively; positively C) negatively; negatively D) negatively; positively ANSWER: A 4. Interest income generated from all assets is called A) net interest margin. B) the spread. C) gross interest income. D) net interest income. ANSWER: C 5. Interest paid on deposits and borrowed funds is called A) net interest expense. B) net interest margin. C) gross interest expense. D) net spread expense. ANSWER: C 6. Net interest income is the difference between gross interest income and interest expenses and is measured as a percentage of A) liabilities. B) shareholder’s equity. C) assets. D) revenues. ANSWER: C 7. Fees charged by a bank on various services allow the bank to generate: A) noninterest income B) components of net interest margin C) components of net interest income D) components of gross interest income ANSWER: A 8. The loan loss provision should increase during periods of high economic growth. A) True B) False ANSWER: B 9. Noninterest income as a percentage of assets has been consistently lowest for banks that focus on providing loans. offer substantial insurance services. offer substantial securities-related services. offer substantial advisory services. ANSWER: