Multiple Questions Answers

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.