Bank Management
MBC600 Name:______________________
Final Exam
Petosa
Circle the correct response
Part I 20 Points
1. The ratio of a bank's interest income from its loans and security investments less interest expenses on debt issued, divided by total earning assets measures a bank's: A. net operating margin.
B. net return before special transactions.
C. net interest margin.
D. return on assets.
E.
None of the options is correct
2. ROE for a bank is calculated by: A. dividing net after-tax income by total equity capital.
B. dividing total operating revenue less operating expenses by total assets.
C. dividing net pre-tax income by total equity capital.
D. noninterest income less noninterest expenses divided by total earning assets.
E.
None of the options is correct.
3. The employee productivity ratio for a bank is equal to: A. net operating revenue less total interest expenses per employee.
B. total interest and noninterest expense per employee.
C. net operating income per full-time-equivalent employee.
D. total operating earnings less salaries and wages expense per employee.
E.
None of the options is correct.
4. A bank's stock price will tend to rise if the: A. value of the stream of future stockholder dividends is expected to increase.
B. banking organization's perceived level of risk increases.
C. expected dividends decrease.
D.
All of the options are correct.
E.
None of the options is correct.
5. The tax-management efficiency ratio consists of: A. total tax liabilities over net income.
B. tax-exempt assets over taxable assets.
C. net income over pre-tax net operating income.
D. taxes owed over total liabilities of a bank.
E.
None of the options is correct.
6. Which of the following ratios can be used to measure a bank's credit risk? A.
Net loans' duration/Total assets
B.
Interest sensitive
Final Exam
Petosa
Circle the correct response
Part I 20 Points
1. The ratio of a bank's interest income from its loans and security investments less interest expenses on debt issued, divided by total earning assets measures a bank's: A. net operating margin.
B. net return before special transactions.
C. net interest margin.
D. return on assets.
E.
None of the options is correct
2. ROE for a bank is calculated by: A. dividing net after-tax income by total equity capital.
B. dividing total operating revenue less operating expenses by total assets.
C. dividing net pre-tax income by total equity capital.
D. noninterest income less noninterest expenses divided by total earning assets.
E.
None of the options is correct.
3. The employee productivity ratio for a bank is equal to: A. net operating revenue less total interest expenses per employee.
B. total interest and noninterest expense per employee.
C. net operating income per full-time-equivalent employee.
D. total operating earnings less salaries and wages expense per employee.
E.
None of the options is correct.
4. A bank's stock price will tend to rise if the: A. value of the stream of future stockholder dividends is expected to increase.
B. banking organization's perceived level of risk increases.
C. expected dividends decrease.
D.
All of the options are correct.
E.
None of the options is correct.
5. The tax-management efficiency ratio consists of: A. total tax liabilities over net income.
B. tax-exempt assets over taxable assets.
C. net income over pre-tax net operating income.
D. taxes owed over total liabilities of a bank.
E.
None of the options is correct.
6. Which of the following ratios can be used to measure a bank's credit risk? A.
Net loans' duration/Total assets
B.
Interest sensitive