Which of the following about bank lending to government is incorrect?  Question 2Select one:Government securities enable a bank to manage the maturity structure of its balance sheet.Banks invest in government securities because they are a source of liquidityBanks invest in T-notes because they provide short-term income streams.Securities issued by governments are usually regarded as low risk.

Holdings of government bonds are classified on a bank's balance sheet asGroup of answer choicesliabilities, because the bank must borrow in order to be able to invest in the government bonds.assets, because the markets for government bonds are the most liquid in the world.liabilities, because the government bonds must be pledged as collateral against borrowing.assets, because investing in government bonds represents a use of funds for investment.

(I) Banks are financial intermediaries that accept deposits and make loans. (II) The term "banks" includes firms such as commercial banks, savings and loan associations, mutual savings banks, credit unions, insurance companies, and pension funds.Question 7Answera.Both are false.b.Both are true.c.(I) is true, (II) false.d.(I) is false, (II) true.

Which of the following is not a means of financing government spendingGroup of answer choicesBorrow directly from the central bankRaise the income tax rateIssue securities or debt to investors and the marketIncreasing transfer payments to low-income individuals

4. Deposit insurance is only one type of government safety net. All of the following are types of government support for troubled financial institutions EXCEPT A) forgiving tax debt. B) lending from the central bank. C) lending directly from the government's treasury department. D) nationalizing and guaranteeing that all creditors will be repaid their loans in full.

Which of the following is not considered a financial institution?  Group of answer choicesCommercial BanksThe U.S. TreasuryAll of these are financial institutions.The MintThe Federal Reserve System