True or False (Correct the wrong answer) 1) Deposits are considered as assets in the bank’s balance sheet
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question one: True or False (Correct the wrong answer)
1) Deposits are considered as assets in the bank’s balance sheet
2) Credit risk in banks could occur duo to Inadequate income of lenders
3) Interest rate on cash credit is higher than interest rate on bank overdraft
4) Trading securities is one of the agency functions offered by commercial banks
5) Banks accept deposits in order to lend money to the borrowers
6) When banks accept deposits, it basically means they are lending money to the depositors
7) Cash and treasury management are services provided by commercial banks
8) Online banks could face risks linked to rapid technological changes
9) Bank regulation’s only objective is to protect the consumer
10) International banks have higher transaction costs than regular banks
11) Large commercial banks focus on earning fee income on nontraditional activities
12) Deposits are considered as liabilities in the bank’s balance sheet
13) Banks underwriting loans with the expectation that another party would likely bear the risk of the defa ult
can lead to a moral hazard
14) Credit risk in banks could occur because of the unwillingness of lenders to repay
15) Market risk is a considered a major risk for banks
16) A commercial banks deals with corporations as well as individuals
17) A debit card is always a better option than a credit card
18) A credit card is a payment card that deducts money directly from a consumer’s checking account to pay
for a purchase
19) Loans are considered as liabilities in the bank’s balance sheet
20) Commissions are very important revenue sources for banks and are classified as interest income
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