What is the function of Deposit Insurance Corporation? Select one: It does not give guarantee for a loan taken by insured bank. It eliminates competition between commercial banks. It keeps records of malpractices in the form of fraud, forgeries or outright theft committed by financial officers of insured banks or other financial institutions & publish them. It keeps the deposit from the insurance compani

What is the function of Deposit Insurance Corporation? Select one: It does not give guarantee for a loan taken by insured bank. It eliminates competition between commercial banks. It keeps records of malpractices in the form of fraud, forgeries or outright theft committed by financial officers of insured banks or other financial institutions & publish them. It keeps the deposit from the insurance compani

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 16MC: Which of the following are found on the bank side of the bank reconciliation? A. NSF check B....

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Question 6 Explain: the deposit insurance, provided by the government, reduces the incentive for depositors to monitor the bank.
Why does a bank credit a customer's account when the customer makes a deposit and debit the account when the customer makes a withdrawal? O Because banks use a different method of accounting O Because the customer's account is a liability for the bank. Because the customer's account is an asset to the bank
What bank regulations are designed to reduce moral hazard problems created by deposit insurance? Willthey eliminate the moral hazard problem?
1. A bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met, where the bank takes responsibility to pay off the guarantees if the debtor fails to settle the debt. ( ) |2. A performance bond serves as collateral for the buyer's costs incurred if services or goods are not provided as agreed in the contract. ( ) | 3. A bank guarantee and a letter of credit both are instruments which enable customers, or debtors, to acquire
The following is true of deposit insurance, except a Depositor no longer has incentives to monitor the activities of the bank b Moral hazard dissuades the bank manager from taking risky projects c In theory, regulators have replaced depositors in the monitoring of banks d Moral hazard encourages the bank manager to take on risky projects
Question one: True or False (Correct the wrong answer)1) Deposits are considered as assets in the bank’s balance sheet2) Credit risk in banks could occur duo to Inadequate income of lenders3) Interest rate on cash credit is higher than interest rate on bank overdraft4) Trading securities is one of the agency functions offered by commercial banks5) Banks accept deposits in order to lend money to the borrowers6) When banks accept deposits, it basically means they are lending money to the depositors7) Cash and treasury management are services provided by commercial banks8) Online banks could face risks linked to rapid technological changes9) Bank regulation’s only objective is to protect the consumer10) International banks have higher transaction costs than regular banks11) Large commercial banks focus on earning fee income on nontraditional activities12) Deposits are considered as liabilities in the bank’s balance sheet13) Banks underwriting loans with the expectation that another party…
1. What do you think are conditions that must be met if the banker is to honor the customer's cheques? 2. Can you describe any circumstances where it might be in the interest of the bank to divulge information about the affairs of one of its customers? 3. What duties does a customer have to his or her bank?
Which of the following is NOT Non-Authorized Deposit-Taking Institution? O a. Credit Unions O b. Finance Companies Oc. O d. Securitizers Money Market Corporations What is open banking? Time left 0:33 O a. Open Banking refers primarily to giving customers greater access to and control over their own banking data O b. Open Banking enables the customer to direct that they can be provided with parts of their banking data in a secure environment and in a prescribed way O c. Open Banking enables the customer to direct that they, or third parties chosen by them, be provided with pre determined parts of their banking data in a secure environment and in a prescribed way Od. A and B Oe. A and C I bought stock Y last year and make 10% of profit. This year I bought stock Y again. Even though I am making a loss but I will wait and see as my experience with this stock is positive. What kind of bias is this? O a. Anchoring bias O b. Availability bias O.C. Confirmation bias Od. Loss aversion bias
Discuss the advantages and disadvantages of regulatory forbearance in banking. How useful has it been in mitigating COVID-19 stress on banks? Give some examples
Except for those who actually are planning to commit fraud, every borrower who ever applied to a bank promised to pay the loan back, and planned to do that. Yet, banks always seem to have some bad debt, debt that is "non-performing." How does a bank minimize the losses from bad debt?
Which of the following statements is true? O A certified check should be included in the outstanding checks in preparing a bank reconciliation. A certified check is a liability of the of the depositor's bank. A certified check will be less acceptable by many persons who would otherwise accept a personal check. A certified check has been withdrawn by the holder.
1. The relationship between a depositor and a banker is one of: A. Trustee and Beneficiary B. Member and depositor C. Debtor and creditor D. Bailor and bailee 2. What do you think are conditions that must be met if the banker is to honor the customer's cheques? 3. Can you describe any circumstances where it might be in the interest of the bank to divulge information about the affairs of one of its customers? 4. What duties does a customer have to his or her bank?