商业银行管理彼得S.罗斯英文原书第8版 英语试题库Chap010
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Chapter 10
The Investment Function in Banking and Financial-Services Management
Fill in the Blank Questions
1. A(n) _________________________ is a security issued by the federal government which has less
than one year to maturity when it is issued.
Answer: Treasury bill
2. Debt instruments issued by cities, states and other political entities and which are exempt from
federal taxes are collectively known as _________________________ .
Answer: municipal securities
3. The investment maturity strategy which calls for the bank to have one half of its investment
portfolio in very short term assets and one half of its investment portfolio in long term assets is
known as the _________________________ .
Answer: barbell strategy
4. A(n) _________________________ is a security where the interest portion of the security is sold
separately from the principal portion of the security.
Answer: stripped security
5. _________________________ are the way the federal, state and local governments guarantee the
safety of their deposits with banks.
Answer: Pledging requirements
6. The most aggressive investment maturity strategy calls for the bank to continually shift the
maturities of its securities in responses to changes in interest rates and is called the
__________________.
Answer: rate expectation strategy
7. _________________________ is the risk that the bank will have to sell part of its investment
portfolio before their maturity for a capital loss.
Answer: Liquidity risk
8. _________________________ is the risk that the economy of the market area they service may
take a down turn in the future.
Answer: Business risk
9. __________________ is the risk that the company whose bonds the financial institution owns may
retire the entire issue of corporate bonds in advance of their maturity leaving the bank with the risk of earnings losses resulting from reinvesting the cash at lower interest rates.
Answer: Call risk
10. A security issued by the federal government with 1 to 10 years to maturity when it is issued is called
a(n) _________________________ .
Answer: Treasury note
11. A short term debt security issued by major corporations is known as __________________.
Answer: commercial paper
12. The investment maturity strategy which calls for the bank to have all of their investment assets in
very short term maturities is called the _________________________.
Answer: front-end-loaded policy
13. A money market security which represents a bank's commitment to pay a stipulated amount of
money on a specific future date under specific conditions and which is often used in international trade is known as a(n) _________________________.
Answer: bankers' acceptance
14. A(n) _________________________ is an interest-bearing receipt for the deposit of funds in a bank
for a stipulated time period. Ones that are oriented towards business customers or institutions are known as jumbos.
Answer: certificate of deposit
15. _________________________ are any securities which reach maturity in under one year.
Answer: Money market securities
16. _________________________ are any securities whose original maturity exceeds one year.
Answer: Capital market securities
17. Securities sold by Fannie Mae, Freddie Mac and others are known as
_________________________.
Answer: federal agency securities
18. Claims against the expected income and principal generated by a pool of similar-type loans are
known as _________________________.
Answer: securitized assets