True or false about banking terms

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   CASA covers current and savings accounts.

2. Statement is true

   No

   Statement

   CRR is parked with another commercial bank.

3. Statement is true

   Yes

   Statement

   SLR may be held in gold.

4. Statement is true

   Yes

   Statement

   Leverage is assets divided by capital.

5. Statement is true

   No

   Statement

   A derivative has value of its own.

6. Statement is true

   Yes

   Statement

   HFT and AFS make up the trading book.

Instructions

Decide whether each statement is true or false.

Explanation