QUESTION 1Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.1 points   QUESTION 2AllStarBank has the following balance sheet (in millions):          Assets                                         Liabilities and Equity         Cash                $30            Deposits                                $110         Loans                90            Borrowed funds                       40         Securities         50            Equity                                         20        Total assets    $170            Total liabilities and equity   $170AllStarBank’s largest customer decides to exercise a $15 million loan commitment. How will the new balance sheet appear if AllStar uses the purchased liquidity management liquidity?A.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                  50             Equity                                        20              Total assets     $185             Total liabilities and equity  $185B.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $105         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        25                Total assets     $185           Total liabilities and equity   $185C.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                   50            Equity                                          5       Total assets            $170            Total liabilities and equity    $170D.                    Assets                               Liabilities and Equity                                Cash                         $30            Deposits                                $110         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        20                Total assets     $185           Total liabilities and equity   $185E.                               Assets                               Liabilities and Equity                 Cash                         $15            Deposits                                $110         Loans                       105            Borrowed funds                       40         Securities                   50            Equity                                       20       Total assets            $170            Total liabilities and equity    $170

QUESTION 1Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.1 points   QUESTION 2AllStarBank has the following balance sheet (in millions):          Assets                                         Liabilities and Equity         Cash                $30            Deposits$110         Loans                90            Borrowed funds                       40         Securities         50            Equity                                         20        Total assets    $170            Total liabilities and equity$170AllStarBank’s largest customer decides to exercise a $15 million loan commitment. How will the new balance sheet appear if AllStar uses the purchased liquidity management liquidity?A.                    Assets                               Liabilities and Equity                                Cash$30            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                  50             Equity                                        20              Total assets$185             Total liabilities and equity  $185B.                    Assets                               Liabilities and Equity                                Cash$30            Deposits                                $105         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        25                Total assets$185           Total liabilities and equity   $185C.                               Assets                               Liabilities and Equity                 Cash$15            Deposits                                $110         Loans                       105            Borrowed funds                       55         Securities                   50            Equity                                          5       Total assets$170            Total liabilities and equity    $170D.                    Assets                               Liabilities and Equity                                Cash$30            Deposits                                $110         Loans                         75            Borrowed funds                       55            Securities                80            Equity                                        20                Total assets$185           Total liabilities and equity   $185E.                               Assets                               Liabilities and Equity                 Cash$15            Deposits                                $110         Loans                       105            Borrowed funds                       40         Securities                   50            Equity                                       20       Total assets$170            Total liabilities and equity    $170