Multiple choice

1. Several money market securities are listed below. Indicate whether each security represents a bank asset, a bank liability, or neither.

a. Banker's Acceptance ­­­­­­­­­­­­­­­___________

b. Negotiable Certificate of Deposit…._________

c. Treasury Bill …._______ 

d. Federal Funds Purchased ….___________ 

2. The bank investment portfolio provides both ___________and ___________ to the bank.

3. _____________deposits represent about two thirds of M1.

4. In commercial banks __________deposits are the most important source of funds; ___________________ loans represent the major investment category.