I. MCQ 1. In general, banks make profits by selling liabilities and buying assets. A....

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Accounting

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I. MCQ 1. In general, banks make profits by selling liabilities and buying assets. A. long-term; short-term B. more; less short-term; long-term D. high interest-rate; low interest-rate E. long-term; long-term 2. It is easier to evaluate a bank using financial statements when the bank: @is a conglomerate B. has recently merged with its largest competitor. C. has a different fiscal year than other firms in the industry. D. uses the same accounting procedures as other banks. E, tends to have many 3. An increase in which of the following will increase the return on equity, all else constant? ROE 1. Non-interest income II. Long-term debt III. Interest income IV. Total equity. A. I and II only B II and IV only C. I and III only D. I, II, and III only E. I, II, III, and IV 4. Shareholders of a bank probably have the most interest in which one of the following sets of ratios? A. Return on assets and net interest margin B. Long-term debt ratio and net interest margin C. Price-earnings ratio and debt-equity ratio Market-to-book ratio and price-earnings ratio E. Return on equity and price-earnings ratio

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