Personal Finance Chapter Revision Questions
End of chapter revision questions for the mid term exam Rose Ch5 Questions 3, 6, 7 Ch 6 Questions 4, 5, 9 Rose Ch 17 Questions 7, 8 Ch 12 Questions 3, 6
5-3. If you know the following figures:
|Total Interest Income |290 |Provision for Loan Loss |10 |
|Total Interest Expense |205 |Income Taxes |15 |
|Total Noninterest Income |27 |Dividends to Common |11 |
|Total Noninterest Expense |40 | Shareholders | |
Please Calculate these items:
|Net Interest Income |85 …show more content…
c. The bank posts the amount of interest earned on the savings account of one of its customers.
This would be part of Total Interest Expenses.
d. Management expects that among a series of real estate loans recently granted the default rate will probably be close to 3 percent.
This would be part of PLL to go into reserves for future bad debts.
e. Nr. And Mrs. Harold Jones just purchased a safety deposit box to hold their stock certificates and wills.
This would be part of Additional Noninterest Income and part of Total Noninterest Income
f. The bank colleges $1 million in interest payments from loans it made earlier this year to Intel Composition Corp.
This would be part of Total Interest Income
g. Hal Jones’s checking account is charged $30 for two of Hal’s checks that were returned for insufficient funds.
This would be part of Service Charges on Deposit Accounts and then part of Total Noninterest Income
h. The bank earns $5 million in interest on government securities it has held since the middle of last year.
This would be part of Total Interest
5-3. If you know the following figures:
|Total Interest Income |290 |Provision for Loan Loss |10 |
|Total Interest Expense |205 |Income Taxes |15 |
|Total Noninterest Income |27 |Dividends to Common |11 |
|Total Noninterest Expense |40 | Shareholders | |
Please Calculate these items:
|Net Interest Income |85 …show more content…
c. The bank posts the amount of interest earned on the savings account of one of its customers.
This would be part of Total Interest Expenses.
d. Management expects that among a series of real estate loans recently granted the default rate will probably be close to 3 percent.
This would be part of PLL to go into reserves for future bad debts.
e. Nr. And Mrs. Harold Jones just purchased a safety deposit box to hold their stock certificates and wills.
This would be part of Additional Noninterest Income and part of Total Noninterest Income
f. The bank colleges $1 million in interest payments from loans it made earlier this year to Intel Composition Corp.
This would be part of Total Interest Income
g. Hal Jones’s checking account is charged $30 for two of Hal’s checks that were returned for insufficient funds.
This would be part of Service Charges on Deposit Accounts and then part of Total Noninterest Income
h. The bank earns $5 million in interest on government securities it has held since the middle of last year.
This would be part of Total Interest