Balance sheets of commercial banks and mutual funds

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Reference no: EM132031358

1. The balance sheets of commercial banks and mutual funds look strikingly similar except for which of the following?

A. Commercial banks distinguish between depositors and shareholders.

B. Mutual banks distinguish between depositors and shareholders.

C. Commercial banks distinguish between assets and libilities, but mutual funds do not.

D. Mutual funds distinguish between assets and liabilities, but commercial banks do not.

2. For a price of $100,000 you buy a business for which you have calculated a net present value of $150,000. In so doing, what value have you "immediately" created?

A. $0

B. $50,000

C. $100,000

D. $150,000

3. A "reverse mortgage" is a bet by a life insurer that the person insured will die sooner rather than later.

A. True

B. False

Reference no: EM132031358

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