Question 1

Which of the following is NOT an off balance sheet activity for Canadian banks?

Accepted Answer

A) Derivative contracts. 
B) Loan commitments. 
C) Standby letters of credit. 
D) Trust services. 
E) When-issued securities. 
A) Derivative contracts. 
B) Loan commitments. 
C) Standby letters of credit. 
D) Trust services. 
E) When-issued securities.

Question 2

Holdings of Government of Canada securities are classified on a DTI's balance sheet as

Accepted Answer

A) assets, because Government of Canada securities are default risk-free. 
B) liabilities, because the DTI must pay cash in order to acquire the securities. 
C) assets, because securities holdings represent a use of funds for investment. 
D) liabilities, because the Government of Canada securities must be pledged as collateral against borrowing from the Bank of Canada. 
E) assets, because the market for Canadian government securities is the most liquid in the world. 
A) assets, because Government of Canada securities are default risk-free. 
B) liabilities, because the DTI must pay cash in order to acquire the securities. 
C) assets, because securities holdings represent a use of funds for investment. 
D) liabilities, because the Government of Canada securities must be pledged as collateral against borrowing from the Bank of Canada. 
E) assets, because the market for Canadian government securities is the most liquid in the world.

Question 3

The largest asset class on Canadian banks' balance sheet as of April 30, 2013 was

Accepted Answer

A) investment securities. 
B) business loans. 
C) real estate loans. 
D) cash. 
E) deposits. 
A) investment securities. 
B) business loans. 
C) real estate loans. 
D) cash. 
E) deposits.

Which of the following is NOT an off balance sheet activity for Canadian banks?

Holdings of Government of Canada securities are classified on a DTI's balance sheet as

The largest asset class on Canadian banks' balance sheet as of April 30, 2013 was

Why Are Financial Institutions Special

Finance Companies

Securities, Brokerage, and Investment Banking

Mutual Funds, Hedge Funds, and Pension Funds

Insurance Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loans

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization Index

Filters

Exam 2: Deposit-Taking Institutions

Which of the following is NOT an off balance sheet activity for Canadian banks?

Holdings of Government of Canada securities are classified on a DTI's balance sheet as

The largest asset class on Canadian banks' balance sheet as of April 30, 2013 was

Why Are Financial Institutions Special

Finance Companies

Securities, Brokerage, and Investment Banking

Mutual Funds, Hedge Funds, and Pension Funds

Insurance Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loans

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization Index

Filters