Assignment:
Question 1. What is the purpose of having a correspondent bank relationship?
Question 2. Discuss the advantages and disadvantages of a bank holding less cash.
Use the following information for questions 3 to 4.
Question 3. How much Tier 1 capital does the bank have?
a. $100
b. $400
c. $450
d. $750
e. $950
Question 4. How much Tier 2 capital does the bank have?
a. $200
b. $450
c. $550
d. $800
e. $1100
Question 5. Discuss the TARP Capital Purchase Program.