3. What factors caused the decrease in loan volume relative to other assets on the  balance sheets of commercial banks? How has each of these factors been related  to the change and development of the financial services industry during the
1990s and 2000s? What strategic changes have banks implemented to deal with  changes in the financial services environment?
5. What are the major sources of funds for commercial banks in the United States?  How is the landscape for these funds changing and why?
6. What are the three major segments of deposit funding? How are these segments  changing over time? Why? What strategic impact do these changes have on the  profitable operation of a bank?
7. How does the liability maturity structure of a bank's balance sheet compare  with the maturity structure of the asset portfolio? What risks are created or  intensified by these differences?
11. For each of the following banking organizations, identify which regulatory  agencies (OCC, FRB, FDIC, or state banking commission) may have some reg- ulatory supervision responsibility:
a. State-chartered, nonmember non-holding company bank.
b. State-chartered, nonmember holding company bank.
c. State-chartered member bank.
d. Nationally chartered non-holding company bank.
e. Nationally chartered holding company bank.
12. What are the main features of the Riegle-Neal Interstate Banking and Branch- ing Efficiency Act of 1994? What major impact on commercial banking activity  occured from this legislation?
13. What factors normally are given credit for the revitalization of the banking  industry during the 1990s? How is Internet banking expected to provide ben- efits in the future?
26. Megalopolis Bank has the following balance sheet and income statement.
Balance Sheet (in millions)
Assets Liabilities and Equity
Cash and due from banks $ 9,000 Demand deposits $ 19,000
Investment securities 23,000 NOW accounts 89,000
Repurchase agreements 42,000 Retail CDs 28,000
Loans 90,000 Debentures 19,000
Fixed Assets 15,000 Total liabilities $155,000
Other assets 4,000 Common stock 12,000
Total assets $183,000 Paid in capital 4,000
Retained earnings 12,000
Total liabilities and equity $183,000
Income Statement
Interest on fees and loans $ 9,000
Interest on investment securities 4,000
Interest on repurchase agreements 6,000
Interest on deposits in banks 1,000
Total interest income $20,000
Interest on deposits 9,000
Interest on debentures 2,000
Total interest expense $11,000
Operating income $ 9,000
Provision for loan losses 2,000
Other income 2,000
Other expenses 1,000
Income before taxes $ 8,000
Taxes 3,000
Net income $ 5,000
For Megalopolis, calculate:
a. Return on equity
b. Return on assets
c. Asset utilization
d. Equity multiplier
e. Profit margin
f. Interest expense ratio
g. Provision for loan loss ratio
h. Noninterest expense ratio
i. Tax ratio
27. Go to the FDIC website at www.fdic.gov and find the most recent break- down of U.S. bank asset concentrations using the following steps. Click on  "Analysts." From there click On "FDIC Quarterly Banking Profile" and then  click on "Quarterly Banking Profile." Click on "Commercial Bank Section."  Then click on "TABLE III-A. Full Year (or First XXX Quarters) 20XX, FDIC-
Insured Commercial Banks." This will bring the files up on your computer
that contain the relevant data. How have the number and dollar value of  assets held by commercial banks changed since 2012?
1 . What is the primary function of finance companies? How do finance compa- nies differ from depository institution?
2. What are the three major types of finance companies? To which market seg- ments do each of these types of companies provide service?
3. What have been the major changes in the accounts receivable balances of  finance companies over the 35-year period 1977-2012?
4. What are the major types of consumer loans? Why are the rates charged by  consumer finance companies typically higher than those charged by commer- cial banks?