TRẮC NGHIỆM TIẾNG ANH –

HOẠT ĐỘNG KINH DOANH NGÂN HÀNG

1. Credit institutions are not allowed to perform which of the
following activities?
a. Partial lease of business premises -Cho thuê một phần mặt bằng
kinh doanh
b. Real estate business - Kinh doanh bất động sản
c. Trading in valuable papers - Chuyển đổi giấy tờ có giá
d. Buy real estate to do business - Mua bất động sản để kinh doanh
2. Which of the following statements is not true about activity of
commercial bank?
a. Using mobilized capital to contribute capital, buy shares
b. Open an account to pay at another credit institution
c. Issuing certificates of deposit, promissory notes, bills, bonds to raise
capital
d. Provide financial advice
3. Based on the business strategy, commercial banks can be divided
into type?
a. State-owned commercial banks, joint-stock commercial banks, joint-
venture commercial banks and branches of foreign commercial banks
b. Central commercial banks, provincial commercial banks, district
commercial banks and grassroots commercial banks
c. Wholesale commercial banks, retail commercial banks and commercial
banks both wholesale and retail
d. Private commercial banks and state commercial banks
4. Which of the following statements is true when discussing capital of
commercial banks?
a. Is the entire monetary source created by commercial banks to lend,
invest and perform banking services
b. Is the entire monetary source created by commercial banks to lend and
do business.
c. Is the entire monetary source created by commercial banks to invest and
trade in securities.
d. Is the entire monetary source created by commercial banks for lending
and investment
5. In Vietnam, which financial institution's operation is similar to activity of
an investment bank?
a. Insurance company
b. Securities Company
c. Financial leasing companies
d. Commercial Bank
6. The basis for classifying banks into commercial banks, commercial banks
and cooperative banks is: ngân hàng hợp tác xã
a. Area of operation
b. Business method
c. Banking Business
d. Operational goals
7. Commercial banks can buy and sell the following valuable papers?
a. Government bonds
b. Unlisted corporate shares
c. Saving
d. Yellow
8. Which of the following activities is part of a bank's capital mobilization?
a. Buy securities of listed companies
b. Financial leasing
c. Loans to individuals and organizations
d. Issuing valuable papers
9. Credit activities do not include which of the following activities?
a. Cash reserve
b. Financial leasing
c. Discount valuable papers
d. Loan
10. According to current regulations, domestic commercial banks are established
and organized in the form of:
a. JSC or limited liability company
b. JSC or Private Company
c. One member joint stock company or limited liability company
d. State-owned company or 1-member limited liability company
11. International payment services include:
a. Exchange of vouchers pay at sight (Trust)
b. All right
c. Letter of Credit and Collection with Documents
d. Telegraphic Transfer (T/T)
12. How to distinguish transaction deposit and non-trading deposit?
a. Amount of profit received
b. Only individual customers can use non-trading deposit accounts
c. Purpose of sending money
d. Customers send money
13. Which of the following is not true when it comes to the difference between a
term deposit (tiền gửi có kỳ hạn) and a demand deposit (tiền gửi không kỳ
hạn)?
a. Savings deposit is a bank's capital with a lower cost than savings deposit
(TGCKH là nguồn vốn của ngân hàng có chi phí thấp hơn TGKKH)
b. Customer account is entitled to interest but has to pay fees to the bank
c. Normal deposit interest rates are higher than savings accounts
d. The stability level of TGCKH is higher than that of TGKKH
14. Corporate customers may not own any of the following deposits
a. Saving money
b. Certificates of deposit
c. Deposit payment
d. Term Deposit
15. Which items are not included in the "Liabilities" of the bank:
a. Bonds issued by banks
b. Repurchase agreement
c. Common shares
d. Term Deposit

16. An enterprise A in Ho Chi Minh City wants to pay for goods to a supplier in a
northern province with a value of VND 10 billion. Which vehicle should
businesses use?
a. Authorization to collect
b. Spending authorization
c. Traveller's Cheques
d. Bank card
17. The bank can mobilize capital through which of the following channels?
a. Issuing valuable papers
b. All right.
c. Borrowing from other banks
d. Borrowing NTTW
18. What factors affect deposit mobilization?
a. All the answers are correct
b. Public trust in banks
c. Interest rates and quality of banking services
d. Competition in the market and other external factors
19. Commercial banks operate mainly by:
a. Loans on the interbank market
b. Equity contributed by shareholders
c. Granted budget capital
d. Capital mobilized in the economy, in society
20. Payment by check will:
a. Faster than paying by proxy
b. Not enough grounds to conclude the above ideas
c. All forms of payment are equal
d. Slower than paying by ATM
21. Based on the method of credit repayment, it is divided into:
a. Revolving Credit
b. Installment Credit
c. All 3 ideas above
d. Non-Installment Credit
22. What is not a characteristic of bank credit?
a. Risks in bank credit are inevitable and cannot be ruled out
b. The repayment of both principal and interest
c. Borrowers only repay debt when requested by the bank
d. The refund is unconditional.
23. What is not a condition of collateral?
a. Legal
b. Creditial
c. Calculate value
d. Invisibility
24. What is the type of credit classified by customer credit level?
a. Short-term credit
b. Consumer credit
c. Installment Credit
d. Unsecured Credit
25. Which of the following is an indirect credit transaction?
a. Financial leasing
b. Loan under overdraft limit
c. Lending each time
d. Discount negotiable
26. Which bank's credit operations are considered off-balance sheet transactions?
a. Guarantee
b. Loan
c. Factoring
d. Discount
27. According to the provisions of the Law on Credit Institutions 2010, the
discount is:
a. Loans secured by valuable papers
b. Purchase with a term and without recourse to the beneficiary's negotiable
instruments prior to maturity
c. Term sale and without recourse to beneficiary's negotiable instruments prior to
maturity
d. Purchase with a term or purchase with recourse to the beneficiary's negotiable
instruments prior to maturity
28. Credit is a transaction where the conditions for its formation are:
a. Borrowers must have collateral
b. Borrowers must have credit
c. All of the above are true
d. Borrower must have acquaintance
29. Credit is a debt relationship between two economic entities that the decisive
factor to be formed is?
a. The debtor has a legitimate purpose of using capital
b. Reputable debtors
c. The debtor has collateral
d. Does the debtor use capital for the right purpose?
30. In terms of credit value, which of the following is different from the others?
a. Guarantee
b. Factoring
c. Discount
d. Loan
31. The provisions to ensure safety in the credit policy include:
a. Credit limit
b. Regulations on credit granting process and problem debt settlement process
within the bank
c. All of the above are correct
d. Regulations on forms and measures of credit security

32. The letter C in the CAMPARI rule means:

a. All other answers are incorrect
b. Culture (Culture)
c. Credit
d. Character of the borrower (Character)
33. What are the factors affecting bank credit activities?
a. Own capital and internal conditions of the bank
b. All of the 3 answers are right
c. Bank's business strategy and goals
d. The domestic socio-economic situation and the trend of international
integration in the banking sector
34. Which of the following is an indirect credit transaction?
a. Lending each time
b. Discount negotiable
c. Financial leasing
d. Loan under overdraft limit
35. How is the risk premium calculated:
a. Sum of the probability of default and the loss in default
b. Product of the probability of default and the loss in default
c. The difference between the probability of default and the loss in default
d. The quotient of the probability of default and the loss in default
36. What is the meaning of the credit granting process in commercial banks' credit
 activities?
a. Meaningful as a basis for assigning responsibilities and powers of related
departments in credit activities
b. Meaningful as a basis for evaluating the bank's performance
c. Meaningful in determining the bank's profit level
d. Extremely important because without it banks cannot lend
37. Which of the following risks is not a financial risk for the bank?
a. Interest rate risk
b. Strategic risk
c. Payment risk
d. Credit risk
38. Which risk is not market risk:
a. Work
b. Liquidity
c. Interest rate
d. Exchange rate
39. Credit risks include:
a. Portfolio and business risk
b. Transaction risks and guarantees
c. Trading and Portfolio Risks
d. Option, trading and portfolio risk
40. According to current law, loans are classified into how many debt groups in
order of increasing risk:

a. 3
b. 5
c. 7
d. 4
41. Bancassurance is:
a. Combination of deposit and insurance operations
b. The combination of money transfer and insurance business
c. Combination of credit and insurance operations
d. Combination of banking and insurance
42. Payment services from customer accounts to addresses at the request of
customers are:
a. Account management services and safes
b. Treasury Services
c. Authorized payment service
d. Periodic payment authorized payment service
43. Money exchange and money counting services are services
a. Trust service
b. Money management service on account
c. Treasury services (cash management)
d. All right
44. Which of the following services is not part of the treasury services of
commercial banks?
a. Transfer money overseas
b. Liquidation of assets according to the will
c. Currency exchange at the request of the customer
d. Cash letter at customer's location
45. What is the correct answer when talking about direct investment activities of
banks?
a. Execution of Repo contract
b. Establishing a subsidiary company
c. Invest in Government Bonds
d. Invest in Treasury bills
46. Which of the following activities of commercial banks must be performed
through the establishment of subsidiaries?
a. Provide factoring services
b. Stockbroker
c. Forex trading
d. Real estate business
47. Activities that are not financial investment activities of Vietnamese
commercial banks include:
a. Buying and holding shares of other credit institutions/banks
b. Contribute capital to buy shares of enterprises
c. Securities underwriting consulting
d. Invest in the financial market

48. Which of the following types of contracts does not belong to derivatives?
a. Futures contract
b. Swap contract
c. Credit agreement
d. Option contract
49. Which asset class has high liquidity and low profitability?
a. Government bonds
b. Corporate bonds
c. Contributing business capital to unlisted enterprises
d. Gold, foreign currency
50. Holding and managing assets for the benefit of beneficiaries is the function of
which service?
a. Representative Service
b. Money management service on account
c. All is incorrect
d. Trust service
51. Which of the following statements is not true about derivatives?
a. Derivatives are always born before an underlying contract transaction
b. The advent of derivatives stems from the potential risk in contract transactions
in the economy.
c. Derivatives are a type of financial hedging when performing economic
contracts
d. Using derivatives will help customers prevent and reduce financial risks
52. What is the bank's maximum capital contribution ratio compared to its own
capital and reserve fund?
a. 40%
b. 50%
c. 30%
d. 60%
53. Which of the following is not the purpose of securities investment activities
for commercial banks?
a. Minimize the risk of concentration
b. Provide liquidity to the bank when needed
c. Regulating the stock market
d. Diversify profitable activities
54. Significance of securities investment activities for commercial banks?
a. Customer service development
b. Provide liquidity when needed
c. Minimizing investment risk
d. Brand Enhancement
55. The meaning of securities investment activities for commercial banks is to:
a. Diversify profitable activities
b. Increase profits
c. Provide liquidity when needed
d. These statements are correct
56. Which statement is not true about savings deposits?
a. Customers deposit money for profit purposes
b. Customers deposit money for safety purposes
c. Customers can use the means of payment
d. Customers can withdraw money at any time without prior notice
57. Types of checks guaranteed to be paid by the Bank to the beneficiary by
freezing the check issuer's amount at the Bank are:
a. Security check
b. Cash check
c. Check slash
d. Check by order
58. The bank's capital mobilization activities are:
a. Financial leasing
b. Discount valuable vouchers
c. Loans to individuals and organizations
d. Issuing valuable papers
59. Difference between debit and credit cards:
a. Credit cards are used to grant credit, debit cards are used to pay debts
b. Credit cards do not require customers to have money on their account to use,
debit cards require customers to have money on their account to use
c. Credit cards issued by credit institutions, debit cards issued by banks
d. TD card requires customers to have money on their account to be used, debit
cards do not require customers to have money on their account to use.
60. “ is an unconditional payment order, signed by a customer
of the bank, ordering the bank to deduct a certain amount of money from its
account to pay the customer. Nominated".
a. Payment Order
b. Bill of Exchange
c. Check (Check)
d. Letter of Credit (L/C)
61. Magnetic cards and electronic cards are distinguished from each other in:
a. Origin of the amount on the card
b. Scope of card use
c. Techniques for reading and storing information on cards
d. Card payment method
62. Which of the following are characteristics of electronic communication
equipment:
a. Cardholders get deferred payment
b. Seller's account will be credited after a certain number of days
c. Used in conjunction with an electronic card
d. There is no separation between transaction time and payment time
63. The real interest rate payable by the borrower depends on:
a. Announcement LS
b. Fees included in the loan process
c. Method/method of NH calculating interest
d. These statements are correct
64. A customer uses a card to shop at a supermarket, the value of goods is
immediately debited to the cardholder's payment account and credited to the
supermarket's account. Types of cards and PTTT that are:
a. Electronic credit and payment cards
b. Debit cards and mechanical PTTT
c. Mechanical TD and PTTT cards
d. Debit cards and electronic PTTT
65. Similarities in check payment method and payment order are:
a. Payment documents issued by the debtor
b. Chances of encountering fake vouchers
c. Transferred directly in the transaction
d. All of the above are true
66. Banks invest in fixed rate securities such as government bonds. How will an
increase in market interest rates affect the market price of previously issued
debt securities?
a. Decreasing the market price of debt securities
b. Increases the market price of debt securities
c. Does not change the market price of debt securities
d. All of the above are incorrect
67. Companies that buy or sell foreign currency forward contracts are to:
a. Embrace asset management
b. Manage assets for the benefit of beneficiaries
c. a and b are wrong
d. a and b are correct
68. In securities underwriting, the Bank:
a. Compulsory to underwrite all issued securities
b. Compulsory procedures for offering and underwriting all issued securities
c. Whether or not to spend all depends on the type of underwriting that the bank
provides
d. All of the above are correct
69. Functions of trust:
a. Embrace asset management
b. Manage assets for the benefit of beneficiaries
c. a and b are wrong
d. a and b are correct
70. Arbitrage - exchange rate arbitrage is:
a. NH owns capital to do business
b. Regularly based on SMALL's prediction
c. No exchange rate risk for SMALL
d. Always generate forex status
71. Which of the following is not a market risk according to the Basel committee:
a. Forex risk
b. Commodity risk
c. Interest rate risk
d. Operational risk
72. A customer securely stores gold at the bank. The relationship between the
bank and the customer is:
a. Relationship between borrower and lender
b. The relationship between the consignee and the depositor
c. The relationship between the lessor and the lessee of the safe
d. Owner and agent
73. When analyzing the repayment ability of customers, commercial banks will
consider which factors are the first sources of debt repayment:
a. All assets owned by the borrower
b. Value of secured property
c. Cash flow from loan option
d. abc is right
74. The type of risk related to the appraisal and analysis of customers before
making a credit granting decision is called:
a. Credit risk
b. Choice risk
c. Business risk
d. Guaranteed risk
75. Credit institutions contribute capital to purchase shares of enterprises
by:
a. Charter capital, reserve fund and mobilized capital
b. Charter capital and reserve fund
c. Charter capital and mobilized capital
d. Charter capital, reserve fund and borrowed capital
76. Credit institutions shall classify debts by year (05) groups as follows:
a. Eligible debt; Subprime debt; Debt notes; Doubtful debt; Irrecoverable debts
b. Eligible debt; Debt notes; Doubtful debt; Subprime debt; Irrecoverable debts
c. Eligible debt; Debt notes; Subprime debt; Doubtful debt; Irrecoverable debts
d. Eligible debt; Doubtful debt; Debt notes; Subprime debt; Irrecoverable debts
77. The objectives of financial investment activities of commercial banks are:
a. Spread the risk
b. Increase income, create more profit
c. Create liquidity
d. All right
78. Which of the following types of contracts belongs to derivatives:
Hợp đồng phái sinh
a. Guarantee contract
b. Mortgage contracts
c. Option contract
d. Credit agreement
79. Credit-side operations of the bank include:
Treasury kho bạc
a. Treasury, credit and securities investment
b. Funds, loans and bank guarantees
c. Deposit mobilization, lending and securities brokerage
d. All right
80. Which of the following states the difference between a check and a
payment order?
a. Subjects make different payment orders
b. The probability of counterfeit vouchers in checks is higher than in payment
orders
c. Checks are delivered directly in the transaction, while the payment order is not
d. Sentences b and c are correct
81. Significance of securities investment activities for commercial banks to
a. Provide liquidity when needed
b. Diversify profitable activities
c. Dispersing risks in capital use
d. These statements are correct
82. Which of the following factors has the strongest influence on choosing a
bank to open a checking account?
a. Interest rate of deposit
b. Minimum balance to maintain account
c. Flexibility and variety of means of payment
d. How to calculate profit?
83. Which of the following statements describes the nature of transactional
deposits?
a. Abnormally fluctuating balances
b. To use the means of payment via bank
c. No interest/low interest payment
d. All the sentences are incorrect
84. Diversification in credit portfolio structure
a. Banks easily grasp the characteristics of the customers they choose to lend
b. Banks easily grasp the characteristics of the industry they choose to lend
c. Banks leverage their insights into a certain market segment
d. All of the above are incorrect
85. According to current regulations of the State Bank, credit institutions are
not required to maintain
a. Minimum capital adequacy ratio CAR and short-term capital ratio for medium-
term loans
b. Credit limit and share capital contribution limit
c. a and b are both correct
d. d. All is incorrect
86. Which of the following is not a debtor/source-generating operation of a
bank?
a. Deposit mobilization
b. Discount price sheet with price
c. Borrowing on the interbank market
d. Issuance of shares
87. Which of the following is an on-balance sheet transaction of commercial
banks?
a. Buy corporate bonds
b. Investment consulting
c. Safes for rent
d. Loan guarantee
88. Which of the following statements is not true about options contracts?
a. In an options contract, the buyer of the option pays the seller an amount called
the option cost
b. Commodities applicable in the case of options can be stocks, stock
indices
c. Buyer and seller are required to perform the committed transaction
d. An option contract is an instrument that allows its holder to buy or sell a
specified quantity of a commodity at a specified price and within a specified
period of time.
89. Which of the following tools is considered an on-balance sheet tool to help
banks reduce credit portfolio risk?
a. Debt securitization
b. Credit Risk Swap
c. Debt trading
d. None of the above tools
90. Which of the following statements is not true?
a. In essence, interest rates are a type of price and are influenced by supply and
demand
b. Basic interest rate is the highest interest rate that banks apply to lend to
reputable customers
c. Base interest rate is the floor of lending interest rate
d. The base rate indicates the minimum income on the bank's loan amount
91. Basel standards can help banks
a. Improve and enhance risk management capabilities
b. Branch network expansion
c. Developing new products and services
d. Ensuring network security in electronic transactions worldwide
92. Which of the following services is not part of the treasury services of
commercial banks?
treasury services: dịch vụ ngân quỹ
a. Currency exchange at the request of the customer
b. Signing assets according to the will
c. Cash collection at customer's location
d. Transfer money overseas chuyển tiền ra nước ngoài
93. Which of the following activities of commercial banks must be performed
through the establishment of subsidiaries?
Thông qua việc thành lập công ty con
a. Real estate business
b. Securities trading
c. Forex trading: kinh doanh ngoại hối
d. Provide factoring services
94. A customer deposits a large amount of money in the bank for the purpose
of gradually contributing more each month to save after a few years to
cover the costs of sending his children to study abroad, the appropriate
deposit product is
a. Unlimited savings
b. Savings with flexible principal and interest
c. Savings in installments tiết kiệm trả góp
d. Term Deposit Savings
95. ABC company needs a bank to finance a new order after selling goods
with deferred payment to agents, the bank will grant credit to ABC
company in the form of
a. Loan to supplement working capital
b. Showcase
c. Contract performance guarantee
d. Factoring bao thanh toán
96. Which of the following transactions is an on-balance sheet transaction of
 commercial banks? giao dịch nội bảng
a. Buy corporate bonds: mua trái phiếu công ty
b. Investment consulting: tư vấn đầu tư
c. Safes for rent:
d. Loan guarantee: đảm bảo khoản vay
97. Credit cards and debit cards can be distinguished by which of the
following?
distinguished: phân biệt
a. Card payment uses
b. Scope of payment use of the card
c. Card payment technology
d. Origin of the amount on the card: nguồn gốc của số tiền trên thẻ
98. Treasury bills are issued for the purpose of
Tín phiếu kho bạc được phát hành nhằm mục đích
a. Raising capital for the company
b. Serving the needs of investment and development for the company
c. Compensating the deficit of the State Budget: bù đắp nội chi ngân sách nhà
nước
d. Increase spending for the company
99. The construction of the internal ranking system aims to
Việc xây dựng hệ thống xếp hạng nội bộ
a. Managing staff in the bank
b. Manage all bank customers
c. Ensuring network security for the e-banking system
d. All of the above are incorrect

100. Which of the following items belong to the capital of commercial banks?
a. Customer's L/C opening margin deposit
b. Deposits at other commercial bank
c. Contributing capital to a joint venture with other credit institutions
d. Buy shares in affiliated companies
101 . Which of the following is a qualitative assessment method for customers
and loans ?
phương pháp đánh giá định tính
a. Method of artificial nervous system: phương pháp hệ thần kinh nhân tạo
 b. Judgment method: phương pháp phán đoán
c. Credit score method: phương pháp tính điểm tính điểm tín dụng
d. All of the above are correct
102 . Minimum capital adequacy ratio is
Tỷ lệ an toàn vốn tối thiểu
a. Own capital divided by assets and liabilities at risk.
b. Own capital divided by assets with convertible risk. vốn tự
có trên tài sản có rủi ro chuyển đổi
c. Charter capital divided into convertible risky assets.
d. Own capital divided by total capital.
103 . Which of the following measures will help depositors directly increase
economic benefits?
a. Diversify deposit products
b. Applying competitive interest rates
c. Diversify products and services
d. Join deposit insurance
10 4 . Credit Scoring System is used to
a. Credit officer management
b. Customer analysis in deposit transactions
c. Improve the quality of payment by credit card
d. All of the above are incorrect
105 . Which of the following statements is not true about agency services?
a. The relationship between the customer and the representative is not as close
as in the mandate
b. An authorized representative on behalf of the client in each specific case
c. The agent has more rights to the property than the fiduciary service
d. All of the above sentences are wrong
106 . Which of the following documents in the loan application file shows the
borrower's voluntariness:
a. Business registration license: giấy phép đăng ký kinh doanh
b. Contract for the purchase of raw materials: hợp đồng mua nguyên vật liệu
c. Certificate of land use right: giấy chứng nhận quyền sử dụng đất
d. Loan application form:
107 . What are the main differences in operation between commercial banks
and non-banking credit institution
Ngân hàng thương mại và Tổ chức tín dụng phi ngân hàng
a. Commercial banks are allowed to raise capital by personal deposit accounts
while non-bank credit institutions cannot
b. Commercial banks lend and mobilize capital while non-bank credit
institutions lend but do not mobilize capital
c. Commercial banks are a type of credit institutions, so they only do some
banking activities while non-bank credit institutions are allowed to do all
banking activities.
d. Commercial banks are allowed to lend while non-bank credit institutions
cannot
108 . According to current regulations, which account is the amount used for
debit card payment?
a. Term deposit account
b. Payment deposit account
c. Term savings account
d. Current account
109 . In Vietnam, which of the following forms of payment is exclusively for
credit institutions?
exclusively: dành riêng
 a. Payment by authorization
b. Clearing
c. Payment by authorization
d. Payment by bill of exchange
110 . According to the current lending regulations, the number of loan
methods that the bank can make is:
a. 8 methods
b. 7 methods
c. 6 methods
d. 5 methods
111 . Banks are organizations
a. Borrow to lend
b. Get deposit to lend
c. Get entrusted capital to lend
d. Issue shares to lend
112 . The law stipulates which of the following activities are banking
activities?
stipulates: quy định
a. Lending , deposit mobilization, financial consulting
b. Receiving deposits, granting credit, currency brokerage
c. Receiving deposits, granting credit, providing payment services through
accounts
d. Receiving deposits, granting credit, anti-money laundering, financial advice
113 . Which of the following is not true about financial companies?
a. Operating in the field of conditional business
b. Providing payment services
c. Business objects are financial assets
d. As a financial intermediary
114 . Joint venture capital of commercial banks is deducted from
 deducted: khấu trừ
a. NH's charter capital
b . Deposits mobilized from customers
c. SMALL Reserve
Fund d. a and c

EXAM CODE 1
Question 1: In a Loan Agreement,........... are those things a borrower must do.
They are actions the borrower must take. Examples include filing periodic financial
statements with the bank and purchasing insurance on any collateral pledged.
a. Affirmative covenants c. Promissory note
b. Negative covenants d. Borrower Guaranties and Warranties
Question 2: A money market security which represents a bank's commitment to pay
a stipulated amount of money on a specific future date under specific conditions and
which is often used in international trade is known as a(n)
a. Commercial Paper c. Bankers' acceptance
b. Certificate of Deposit (CDs) d. Asset backed
security Question 3: Which following statements are not correct about
bank loans?
a. A written loan policy gives loan officers and the bank's management
specific guidelines in making individual loan decisions and in forming the
bank's loan portfolio.
b. Cash is one of the 6 C's of lending and refers to the fact that the lender wants
to make sure the borrower has the ability to generate enough cash to repay the
loan.
c. Loan review is considered to be a luxury, not a necessity for most banks,
especially those with sound lending policies.
d. The principal reason credit institutions are chartered by state bank is to make
loans to their customers.
Question 4: Which of the following types of banks would most likely offer the largest
types of financial services?
a. Universal bank c. Commercial bank
b. Community bank d. International bank
Question 5: By offering financial institution will buys and sells securities on behalf of
customers and for their own accounts.
a. Brokerage service c. Trust service
b. Security investment d. Cash management
Question 6: A bank sells shares of its common stock with a par value of $200 for
$300 in the market. Which two accounts on the bank's balance sheet are going to
be affected?
300-200 thặng dư cổ phần: capital surplus accounts
a. Retained earnings and capital surplus accounts
b. Retained earnings and common stock outstanding accounts
c. Common stock outstanding and capital surplus account
d. Subordinated notes and debentures and commons stock outstanding account
Question 7: How much interest will be earned in the third year if $1,000 is
deposited that earns 8% interest compounded annually? (trong năm thứ 3 chứ
không phải cả 3 năm)
1000×((1+8%/1)^3 -1) - 1000*((1+8%/1^2 - 1)

Lãi trong năm thứ 3 đc bao nhiu thì lấy tổng lãi kép cả 3 năm trừ cho lãi kép 2 năm
đầu là ra năm thứ 3
a. $593.31 c. $105.62
b. $93.31 d. $104.00
Question 8: Commercial bank finances the purchase of automobiles, mobile
homes, appliances, and other retail goods to repair and modernize homes. They
are all classified under which of following loan categories?
a. Financial institution loans c. Loans to individuals
b. Commercial industrial d. Real estate loans
Question 9: Which are pricipal roles of financial institution's investment
portfolio played in banking operation?
a. Income stability c. Backup liquidity
b. Offset credit risk d. All of the above
 Question 10: The lists the assets, liabilities and equity capital held by the bank
on a given date.
a. Report of Income (BCKQKD) c. Report of Cash flow (BCLCTT)
b. Report of Condition (=balance sheet) d. Notes to financial statement
(TMBCTC)
Question 11: Dan Cross is a junior loan officer with First State Bank of
Durant. He has been busy visiting local businesses to see if any of them needs
credit.
Which step in the lending process is Dan performing?
a. Finding prospective customers
b. Making a site visit and evaluating a customer's credit history
c. Evaluating a prospective customer's financial condition
d. Assessing possible collateral and signing the loan agreement
Question 12: As one of the 6 C's of lending,suggests that the lender must look
at the position of the business firm in the industry and the outlook of the
industry and the economy to evaluate a loan.
a. Condition (điều kiện) c. Capacity
b. Character d. Collateral
Question 13: When a loan is considered uncollectible, the bank's accounting
department will write it off the books by increasing the then reducing….
the accounts. Which choice below correctly fills in the blank in the preceding
sentence?
a. Allowance for loan losses: Gross Loans
b. Allowance for loan losses; Net Loans
c. Gross Loans; Allowance for loan losses
d. Net Loans ; Allowance for loan losses
Question 14: is an alternative to lending in which the financial
institution purchases the equipment and rents it to its customers.
a. Long-term Loan c. Financial Advice
b. Trust service d. Leasing service
Question 15: A(n)_______ is where the financial institution agrees to guarantee
repayment of a customer's loan received from a third party
a. Loan and Leasing c. Unused loan commitment
b. Standby credit agreement d. Security investment
Question 16: Which of the following is not one of the capital market instruments
in which banks invest?
a. U.S. Treasury notes c. Treasury bonds
b. Corporate notes and bonds d. Commercial paper: thương phiếu
Question 17: Bank assets fall into each of the following categories except:
a. Loan c. Investment securities
b. Time deposit d. Cash
Question 18: When loan demand is low, a commercial bank may invest more on
financial securities. But bank may sell investments when loan demand is high. It is the
role of financial investment playing on which account on the bank's balance sheet?
a. Non-deposit borrowing c. Loan
b. Deposit d. Cash

Question 19: Lucky Louie has $10,000 that he wants to invest for 3 years but
wants to take lowest risk on the investment. His best course of action would be to:
a. Put his money in a 3 year saving account
b. Invest in a blue chip stock portfolio
d. Put his money in a checking account
Question 20: Which sentence is wrong about bank?
a. Banks are those financial institutions that today offer the widest range of
financial services of any business firm in the economy
b. Lending institutions act as delegated monitors and can diversify and reduce their
risk exposure, resulting in increased safety for savers' funds.
c. The role performed by banks in the economy in which they transform savings into
credit is known as the intermediation role.
d. The loosening of government regulation and control of financial institutions is
called reregulation. (sai vì must called government deregulation: bãi bỏ quy định của
chính phủ)
loosening: nới lỏng
regulation: điều chỉnh lại
equipment: thiết bị
Offset credit risk: bù đắp rủi ro tín dụng
Allowance for loan losses: dự phòng rủi ro
Test
1. The First State Bank of Duncan buys railroad cars and rents them to the Santa Fe
Railroad Company. What type of credit service has this bank made?
A. Financial leasing service
B. Loan to an individual

C. Financial Institution

D. Commercial and industrial loan

2. You borrowed $10,000 for a year with a loan fee of $100 and interest totaling $900.
Your finance charge will be:
A. $100 C. $1,000

B. $800 D. $10,90

3. The ____ lists the uses and the sources of funds held by the bank on a given date.

A. Report of Condition

B. Report of Income

C. Report of Cash flow

D. Notes to financial statement

4. Which of the following transactions do not affect interest income of commercial

banks?
A. Bank gains $25 from security investment by price difference.

B. Bank received $10 as coupon payment of government bond that bank is

holding.
C. The bank recorded $15 as the amount of overdraft interest on the deposit
account of its customers.
D. The bank collected $1 million in interest payments from business loans

5. ____ is financial institution's bad-debt reserve, as reported on its balance sheet.

Correspondingly, an expense item on a bank's Report of Income designed to shelter
a bank's current earnings from taxes and help prepare for bad loan is called...
A. Provision for possible loan losses/ Allowance loan loss

B. Allowance loan losses / Provision for possible loan losses

C. Reserve Requirements/ Provision for possible loan losses
 D. Allowance loan loss / Net non-interest expense

6. The most common sources that lenders look to for repayment of business loans
include all of the following except:
A. The borrower’s cash flow

B. Assets pledged as collateral

C. Relatives of the borrower

D. The borrowers net worth

7. ____ refers to the delivery of services by a bank to individual customers rather than
to companies or other banks.
A. Minority Bank

B. Commercial Bank

C. Retail Bank
D. Saving Bank

8. In Vietnamese banking system, ..........is established by the Government and operate

not for profit to implement the socio-economic policies.
A. Representative Offices of Foreign Bank

B. State-owned Commercial Bank

C. Cooperative bank

D. Policy bank
9. A bank's ____ gives loan officers specific guidelines in making individual loan
decisions and in shaping the overall loan portfolio.
A. Loan Application
B. Written loan policy
C. Financial statement
D. Loan Commitment Agreement
10. Which of the following NOT accurately describes the bank's non-interest income?
A. Fees for transactions deposit
B. Fees for valuation of mortgage assets
C. Fees for issuing limited-life preferred stock
D. Fees for issuance guarantee letter
11. Antony opens a savings account of $1000 for 1 year and receives upfront interest of
$100. Which two accounts on the bank's financial statement are going to be affected?
A. Deposit and non-interest income
B. Deposit and non-interest expense.
 C. Deposit and interest income
D. Deposit and interest expense
12. Dan Cross, a loan officer at First State Bank of Durant, has been busy visiting local
businesses to see if any of them need credit. Which step in the lending process is Dan
performing?
A. Finding prospective customers
B. Making a site visit and evaluating a customer's credit history
C. Evaluating a prospective customer's financial condition
D. Assessing possible collateral and signing the loan agreement
13. How much interest will be earned in the third year if $20,000 is deposited in three
years with APR at 6.9% and interest compounded annually?
A. $1,577.01
B. S2,855.22
C. $4,432.23
D. $7,287.45
14. A loan to a local business to purchase a new machine would be categorized as:
A. Consumer loans

B. Credit card loans

C. Agriculture loans

D. Industrial loans
15. The difference between non-interest income and non-interest expenses on a bank's
Report of Income is called:
A. Net Interest Income

B. Net Non- Interest Income

C. Net Income After Tax

D. Net Income Before Taxes

16. A bank has a prime rate of 6% for its best customers. It has determined that the
default risk premium for a particular customer is 0.4% and the profit margin for this
loan is 0.25 %. If this customer wants to borrow $5 million from the bank, how much in
interest will this customer pay in one year?
A. $300,000

B. $320,000

C. $332,500
D. $665,000

17. Which of the following statements is NOT correct about non-deposit borrowings of
the bank?
A. One of the factors to consider when a bank chooses among non-deposit funding
sources is the relative cost of each source
B. Nondeposit borrowings provides the additional liquidity that cash assets and
securities cannot provide to commercial bank
C. Bank agrees to sell T-bills to another party and at the same time agrees to buy
them back at a set price is known as a repurchase agreement
D. There are no restrictions on getting funds from any source of non-deposit
borrowings.
18. Banks are regulated for which of the reasons listed below?
A. Banks provide businesses and individuals with loans that support consumption
and investment spending
B. Banks are leading repositories of the public's savings.

C. Banks have the power to create money.

D. All of the above.

19. Jerry LeGere, a loan officer with First National Bank, checks to see if the house
pledged to back up a home mortgage has a clear title and proper insurance. What steps
in the lending process is Jerry performing?
A. Finding prospective customers

B. Making a site visit and evaluating a customer's credit history

C. Evaluating a prospective customer's financial condition

D. Assessing possible collateral

20. Many students cannot afford university their tuition fees. Which type of the
following loans can help them?
A. Business loans

B. Student loans
C. Commercial loans

D. Industrial loans

21. If you deposit S1,000 into a certificate of deposit that quotes you a 5.5% APY, how
much will you have at the end of 1 year?
A. $1,050.00

B. $1,055.00
C. $1,550.00

D. $1,005.50

22. An account at a bank that carries a fixed maturity date with a fixed interest rate and
which often carries a penalty for early withdrawal of money is called:
A. Overdraft deposit account

B. Transaction account

C. Savings account

D. None of the above

23. Bank liability falls into each of the following categories except:
A. Transaction deposit

B. Time deposit

C. Long-term borrowings at other banks

D. The loan and lease loss allowance

24. ...... is a banking service that allows account holders to withdraw more money than
they have in their account, up to a certain limit set by the bank.
A. A short-stamp loans to individuals

B. Financial leasing

C. Savings deposits

D. An overdraft account
25. Assume that a bank receives $18,000 as one-year-saving deposit from a customer
and lends it all to another customer for a year, excluding legal reserve requirements at
5% on deposit. The bank pays a straight 4% APY to the depositor and charges 10% per
year to the borrowers. Calculate the spread of the bank for one year.
A. $1,080.00
B. $990.00

C. $900.00

D. $1,710.00

26. Certificate of Deposit (CDs) is different from other types of non-transaction deposit
in terms of:
A. Minimum deposit amount

B. Negotiable instruments

C. Early withdrawal limitation

D. All of the above

28. Loans extended to finance the purchase of automobiles, mobile homes, home
appliances, and vacations classified as:
A. Agricultural loans
B. Commercial and industrial loans
 C. Real estate loans
D. None of the above
28. In Vietnamese banking system, ......... is may conduct one or several banking
operations under the law credit institutions, except taking deposits of individuals and
providing services of payment via client accounts.
A. Banks
B. Non-Bank Credit Institutions
C. Micro Financial Institutions
D. People's credit fund
29. A Fed Funds loan that is an unwritten agreement negotiated via wire or telephone
with the borrowed returned the next month is known as:
A. An overnight loan
B. A term loan
C. A continuing contract
D. None of the above
30. The role performed by banks in the economy in which they transform savings into
credit is known ….
A. The intermediation role
B. The consulting role
C. The payment role
D. The guarantor role
31. How much will be in a savings account of $7,000 after one-and-a-half years. Know
that the interest rate is 7.3% per year and compounded half yearly?
A. $7,794.82
B. $7,523.53

C. $523.53

D. $794.82

32. A bank that has total interest income of $67 million and total noninterest income of
$14 million. Its provision for loan losses is $6 million, total interest expenses of $35
million and total noninterest expenses (excluding PLL) of $28 million. This bank's
taxes are $5 million. What is this bank's net income after tax?
A. -$14

B. $18

C. $7

D. $32
net income sau thuế=tổng income - tổng chi phí - thuế =(67 + 14 )-( 6 + 35 +28) -5= 7
33. Andy opens the savings account with 10 million VND at XYZ bank within 6
months for an APR 6.7%/year. At maturity, he received 10.3378 million VND totally.
Which payment method does the bank apply in this case?
A Pay once at maturity
B. Pay once at the beginning of the period
C. Periodically paid with quarterly compounding interest
D. Periodically pay with monthly compounding interest
34. A credits agreement in which a business customer may borrow up to a pre-specified
limit, repay all or a portion of the borrowing, and reborrow as necessary until the credit
line matures is known as a (an):
A. Revolving line of credits

B. Non-Revolving loan

C. Lump-sum loan

D. Syndicated loan

35. Which statement is not true about banking operations?

A. One of the principal reasons for government regulation of financial firms is
to protect the safety and soundness of the financial system.
B. Banks are those financial institutions that today offer the widest range of
financial services of any business firm in the economy.
C. The role performed by banks in the economy in which they transform
savings into credit is known as the intermediation role.
D. Money-center banks serve local communities, towns, and cities, offering
usually a narrow menu of services to the public.
36. Along with Eurodollar borrowings, Fed funds purchased is an example of______
A. Security Holdings

B. Nondeposit borrowings

C. Deposit

D. Equity capital

37. Banks generate their largest portion of income from:

A. Short-term investment

B. Demand deposits.

C. Loans.

D. Certificates of deposits.
Big question: A bank that has the following information (in billion)
Deposits at the Federal Reserve: $10
khó quá huhuhu, kh có total loan sao tính net loan? =))))) ai mà biettes
Allowance for Loan Losses: $40
Total Assets: $600
Miscellaneous Assets: $30
Cash in vault: $5
Deposits: $400
Non-deposit Borrowings: $140
Contingency Reserve: $10
Common Stock Par: $20
Time deposit at other Banks: $150
Capital Surplus: $5
38. What is this bank's primary reserve?
A. $10

B. $15

C. $25

D. $165

(Deposit at…. $10 + Cash in vault $5)

39. What is this bank's Net Loan?
A. $195

B. $365

C. $405

D. $445

(Total Asset = Cash + Loan + S + MA) => 600 = (5+10) + L + 150 +30 => L =405
40. What is this bank's Retained earnings?
A. $15

B. $25

C. $50

D. $95

600 = LB + EC = (D + NDP) + (Common Stock Par + Capital Surplus + Contingency

Reserve + Retained earnings) => Retained earnings = 25

L06
1. Bank assets fall into each of the following categories except:
A. Loans
B. Charter Capital
C. Investment securities
D. Cash and due from banks
2. The bank offer overdraft deposit account to customer with the limit of $1000.
Which account of bank's balance sheet is going to be affected at that time?
A. Deposit
B. Unused loan commitment
C. Standby credit agreement
D. Loan and Leasing
3. The Edmond National Bank serves only the City of Edmond, Oklahoma and
concentrates on providing the best possible service to this city. What type of
bank is this most likely to be?
A. Virtual Bank
B. Universal Bank
C. Community Bank
D. Money-center Bank
4. Banks that sell deposits and make loans to both businesses and individuals are
known as______
A. Commercial Banks
B. Central Banks
C. Retailed Banks
D. Wholesale Banks
5. A(n)______ is a short-maturity deposit in which the bank pays a competitive
interest rate to the depositors.
A. Transaction account
B. Savings account
C. Eurocurrency deposit account
D. Money market deposit account
6. Terry May, a loan officer with First National Bank, calculates liquidity and debt
ratios for the Lava Lamp Company and also examines their cash flow statement.
What step in the lending process is Terry performing?
A. Finding prospective customers
B. Making a site visit and evaluating a customer's credit history
C. Evaluating a prospective customer's financial condition
 D. Assessing possible collateral and signing the loan agreement
7. Along with Discount-window loan, Repurchase agreement is an example of
_____
A. Nondeposit borrowings
B. Security Holding
C. Deposit
D. Equity capital
8. _______ are loans to businesses to cover such things as purchasing inventory,
paying taxes and meeting payroll expenses.
A. Consumer loans
B. Agriculture loans
C. Industrial loans
D. Credit card loans
9. Which of the following NOT accurately describes the bank's non-interest
income?
A. Fees for demand account and overdraft maintenance
B. Fees for ATM and POS transactions
C. Fees for issuing common stock
D. Fees for issuing guarantee letter
10. During the loan review process, if the customer is incapable of paying off loan
principal and/or interest in full within the agreed loan term, and is rated by the
credit institution as having capacity for fully repaying those, credit institution's
agreeing to change the agreed loan term from 5 years to 8 years. It's so called:
A. Early repayment
B. Extension of a loan term
C. Adjusted Payment Period
D. None of the above
11. A bank that has total interest income of $880 million and total noninterest
income of $100 million. Its provision for loan losses is $100 million, total
interest expenses of $500 million and total noninterest expenses (excluding PLL)
of $150 million. This bank's taxes are $80 million. What is this bank's net non-
interest income?
A. $300
B. $150
C. $120
D. ($50)
Net non-interest income = Total noninterest income - Total noninterest expenses
 = 100 - 150 = -50
12. Continuing from question 11 above, what is this bank's net income after tax?
A. $150
B. $80
C. $70
D. ($50)
Net income after tax = 880 + 100 - 100 - 500 - 150 - 80 = 150
13. A business receives a three year line of credit against which it can borrow, repay
and borrow again if necessary during the loan's three year term. What type of
loan is this?
A. Lump-sum loan
B. Syndicated loan
C. Revolving line of credit
D. Non-Revolving loan
14. All members of a family want to open a shared demand deposit account. Which
one of the following accounts is suitable for them?
A. Single account
B. Joint account
C. Overdraft account
D. Savings account
15. Assume that a bank receives $20,000 as a one-year-saving deposit from a
customer and lends it all to another customer for a year, excluding legal reserve
requirements at 4% on deposit. The bank pays a straight 6% APY to the
depositor and charges 11% per year to the borrowers. Calculate the spread of the
bank for one year.
A. -$1,048.00
B. $990.00
C. $912.00
D. $1,000.00
20000 * 4% = 800
(20000-800)*11% - 20000*6% = 912
16. An _____ is a loan for which the amount of the payments, the rate of interest,
and the number of payments are fixed.
A. Lump-sum loan
B. Unsecured loan
 C. Installment loan
D. D. Revolving line of credit
17. Antony opens saving account of $300 for 1 year and receives upfront interest of
$30. Which two accounts on the bank's financial statement are going to be
affected?
A. Deposit and interest expense
B. Deposit and non-interest expense
C. Deposit and interest income
D. Deposit and non-interest income
18. Which of following transactions do not affect interest income of commercial
bank?
A. The bank collected $1 million in interest payments from business loans
that it made earlier this year.
B. Depositor's checking account is charged $10 monthly for SMS service
C. The bank recorded $15 as the amount of overdraft interest on the deposit
account of its customers.
D. Bank received $10 as coupon payment of government bond that bank is
holding.
19. How much interest will be earned in the third year if $1,000 is deposited that
earns 8% interest compounded annually?
A. $105.62
B. $104.00
C. $593.31
D. $93.31
1000×((1+8%/1)^3 -1) - 1000*((1+8%/1^2 - 1) = 93.31
20. A loan or line of credit extended to a business by a group of lending institutions
in order to reduce the risk exposure is known as:
A. A working capital loan
B. Non-Revolving loan
C. Project loan
D. Syndicated loan
21. Which of following statement is not a purpose of bank regulations?
A. Ensure safety and soundness of banks
B. Provide monetary stability
C. Guarantee minimum profitability of the banking system
 D. Protect consumers from abuses by banks
22. Andy open the saving account with 10 million VND at XYZ bank within 6
months for an APR 6.7%/year. At the maturity, he receives 10.3378 million
VND totallv. Which payment method does the bank apply in this case?
A. Pay once at maturity
B. Pay once at the beginning of the period
C. Periodically pay with monthly compounding interest
D. Periodically pay with quarterly compounding interest
23. One of the three types of loans in the Fed Funds market,___________are
automatically renewed each day unless either the borrower or lender decides to
end this agreement.
A. A long-term loan
B. A term loan
C. An overnight loan
D. A continuing contract
24. ______ is a record of how well one applicant has repaid debt in the past.
A. Credit history
B. Public record
C. Business performance
D. Criminal record
25. If you borrowed $20,000 for a year with a loan fee of $200 and interest totaling
$1000, your finance charge will be:
A. $200
B. $1,000
C. $1,200
D. $21,200
26. Certificate of Deposit (CDs) is different from other types of non-transaction
deposit in terms of:
A. Early withdrawal limitation
B. Minimum deposit amount
C. Negotiable instrument
D. All of the above
27. The bank places its $1,000 as the reserve requirement ratio into a reserve account
at State Bank. Which items on a bank's Balance sheet would be affected?
A. Non-deposit borrowings
B. Miscellaneous asset
 C. Equity capital
D. Cash asset
28. ______ is a service provided by banks where the bank lends money to
individuals for the purchase of durable and other goods.
A. Consumer loans
B. Real estate loans
C. Agriculture loans
D. Industrial loans
29. In Vietnamese banking system,_______ means a bank of all people's credit funds
for the main purposes of systematic link, financial support and capital balancing
within the system of those.
A. Policy bank
B. Cooperative bank
C. State-owned Commercial Bank
D. Representative Offices of Foreign Bank
30. Find the interest on $1000 at the rate of 8% per year for one and a-half years
when interest is compounded semiannually?
A. $124.86
B. $127.04
C. $1124.86
D. $120.00
1000 * ((1+8%/2)^1.5-1)
31. The Bank, N.A. accepts deposits from thousands of individuals and lends that
money to (among others) Co.op Mart to expand their warehouse. Which of the
following roles is the bank performing?
A. The guarantor role
B. The intermediation role
C. The consulting role
D. The payment role
32. The account that is subtracted from Gross Loans on the Report of Condition is:
A. Loans and leases
B. Nonperforming loans
C. Allowance for possible loan losses
D. Provision for possible loan losses
 33. Special mentioned loans are credits on which any scheduled loan repayments
and interest payments are past due from..... to.....days.
A. 10/90
B. 91/180
C. 181/360
D. None of the above
34. Which of following statement is NOT correct about deposit service of the bank?
A. Deposit accounts whose principal function is to make payments for
purchases of goods and services are called Transaction accounts
B. Term deposits are among the most volatile and least predictable of a
bank's sources of funds with the shortest potential maturity.
C. Customers who wish to set aside money in anticipation of future
expenditures or financial emergencies put their money in savings deposits
D. Deposit services reflect the reputation and growth of the banks.
35. A bank sells shares of its common stock with a par value of $100 for $200 in the
market. Which two accounts on the bank's balance sheet are going to be
affected?
A. Retained earnings and capital surplus accounts
B. Common stock outstanding and capital surplus accounts
C. Retained earnings and common stock outstanding accounts
D. Subordinated notes and debentures and commons stock outstanding
accounts
36. A expense item on a bank's Report of Income designed to shelter a bank's current
earning from taxes and help prepare for bad loan is called..
A. Reserves account with the State Bank
B. Contingency Reserves
C. Allowance for possible loan losses
D. Provision for possible loan losses
37. The Bank of American buys airplanes and rents them to the United Airlines.
What type of credit service has this bank made?
A. Financial institution loan
B. Commercial and industrial loan
C. Financial leasing service
D. Loan to an individual
Big question 1: A bank that has the following information
Investment Security: $100
Gross Loans: $640
Deposits: $600
Common Stock Par: $150
Subordinated debt: $200
Time deposit at other banks: $100
Capital Surplus: $90
Allowance for Loan Losses: $100
Total Assets: $1100
MA Miscellaneous Assets: $100
38. What is this bank's Primary Reserve?
A. $60
B. $100
C. $200
D. $260
C + S + L + MA = Total Assets
Primary Reserve + Investment Security + Time deposit at other banks + (Gross Loans -
Allowance for Loan Losses) - Miscellaneous Assets = 1100
=> Primary Reserve + 100 + 100 + (640-100) + 100 = 1100 => Primary Reserve =
39. What is this bank's Total Liabilities?
A. $600
B. $700
C. $800
D. $900
Total Liabilities = Deposits + Subordinated debt = $200 + $600 = $800
40. What is this bank's Undivided Profits?
A. $60
B. $260
C. $340
D. $140
1100 = Total Liabilities + Common Stock Par + Capital Surplus + Undivided Profits
1100 = 800 + 150 + 90 + Undivided Profits
=> Undivided Profits = 60