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Money and credit - Ivanov V.M.

test questions

1. Why are banking resources called banking capital?

2. The essence of passive operations of banks.

3. The main classification criteria for the resources of commercial banks.

4. Functions of the capital of a commercial bank.

5. Signs of classification of deposits.

6. Methods of resource management of commercial banks.

Tasks

1. Show on the T-account (simplified balance sheet) what will happen if a bank customer deposits 1097 UAH in cash.

2. Show what will happen on the T-account when writing off an overdue loan of 1 million UAH.

3. The bank has a bond with a face value of UAH 1,000,000. The market price for the sale amounted to 800,000 UAH. Customer paid in cash. Reflect the effect of this transaction on the bank’s T-account.

4. For two banks, the level of required reserves established by the NBU is 5%. On deposits is 200 million UAH. Show on T-accounts which of the banks can create deposits (determine the size) due to excess reserves by issuing loans for this amount if the first bank has reserves of 20 million, and the second - only 10 million UAH.

5. Ukrainian company Vesna purchases goods from the US supplier of the company Semi and pays $ 165432 for them. Vesna is a client of the Ukrainian Dream Bank, and Semi, respectively, is a Best bank. Banks are correspondents.

The task:

• draw up a chart of accounts to display the operation;

• review the accounts of each of the banks;

• show the relationship of the accounts of correspondent banks;

• reflect the payment of Vesna enterprise in US dollars by accounting entries according to your chart of accounts;

• compile simplified bank balances after the end of the operation;

• indicate the main types of changes that have occurred in the balance sheets of banks.