1. What are the differences between community banks, regional banks, and money-center banks? Contrast the business...

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Finance

1. What are the differences between community banks, regionalbanks, and money-center banks? Contrast the business activities,location, and markets of each of these bank groups.

2. What are the major uses of funds for commercial banks in theUAE? What are the primary risks to a bank caused by each use offunds? Which of the risks is most critical to the continuingoperation of the bank?

3. The following balance sheet accounts (in millions of dollars)have been taken from the annual report for a U.S. bank. Arrange theaccounts in balance sheet order and determine the value of totalassets. Based on the balance sheet structure, would you classifythis bank as a community bank, regional bank, or a money centerbank? ( explain why )

Assets
Cash $ 2,660
Fed funds sold       110
Investment securities    5,334
Net loans 29,981
Intangible assets       758
Other assets    1,633
Premises    1,078
Total assets $41,554
Liabilities and Equity
Demand deposits $ 5,939
NOW accounts 12,816
Savings deposits    3,292
Certificates of deposit    9,853
Other time deposits    2,333
Short-term borrowing    2,080
Other liabilities       778
Long-term debt    1,191
Equity    3,272
Total liability and equity $41,554

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Ans 1 Difference between Money center banks Regional Banks and community bank Money center bank These are he banks which do not transact with the public It borrow lends money to the other commercial Banks and government Regional Banks These are the banks which performs commercial banking transactions within See Answer

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1. What are the differences between community banks, regionalbanks, and money-center banks? Contrast the business activities,location, and markets of each of these bank groups.2. What are the major uses of funds for commercial banks in theUAE? What are the primary risks to a bank caused by each use offunds? Which of the risks is most critical to the continuingoperation of the bank?3. The following balance sheet accounts (in millions of dollars)have been taken from the annual report for a U.S. bank. Arrange theaccounts in balance sheet order and determine the value of totalassets. Based on the balance sheet structure, would you classifythis bank as a community bank, regional bank, or a money centerbank? ( explain why )AssetsCash $ 2,660Fed funds sold 110Investment securities 5,334Net loans 29,981Intangible assets 758Other assets 1,633Premises 1,078Total assets $41,554Liabilities and EquityDemand deposits $ 5,939NOW accounts 12,816Savings deposits 3,292Certificates of deposit 9,853Other time deposits 2,333Short-term borrowing 2,080Other liabilities 778Long-term debt 1,191Equity 3,272Total liability and equity $41,554