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A borrower agrees to a $150,000, 30 year fixed mortgage rate with a 8% quoted interest rate. What is the payment amount each month?

A. Approximately $1,100

B. $880 approximately

C. Over $1,200

D. Below $790

Banks have an average total debt ratio of about 90 percent. We can state this based on their ROA and ROE diference.

A. True

B. False

I. A bank that specializes in retail or consumer banking in a local market

II. A bank that engages in a complete array of wholesale commercial banking activities and usually also provides retail banking services

III. A bank that is located in a financial center and relies on nondeposit or borrowed sources of funds for a significant portion of its liabilities

A. Money center bank; community bank; super-regional bank

B. Community bank; super-regional bank; money center bank

C. Super-regional bank; money center bank; community bank

D. Money center bank; super-regional bank; community bank

......................... is the provision of banking services to other banks, such as check clearing, foreign exchange trading as an example

A. Trust Services

B. Off balance sheet activities

C. Correspondent banking

D. All of the above

A bank is earning 6 percent on its $150 million in earning assets and is paying 4.75 percent on $135 million of its liabilities. The bank's interest rate spread is ________.

A. 10.75%

B. 1.25%

C. 8%

D. 12%

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