Financial Management Objective Set 2

Q1: Collectively, reserves, cash items in process of collection, and deposits at other banks, are referred to as___in a bank balance sheet  AnswerAnswer: cash items Q2: Commercial banks obtain funds by  AnswerAnswer: All these—issuing demand depositsborrowing from other banksissuing ownership claims (equity) Q3: Compared to interest rates on long-term U.S. government bonds, interest rates on…

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