The Largest Source of Income at a Typical Bank Is

question 56

Multiple Choice

The largest source of income at a typical bank is

• A)interest income on securities held for sale.
• B)interest income on securities held for investment.
• C)interest income on loans and leases.
• D)noninterest income.
• E)dividends or stock.

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Definitions:

Oversubscription Privilege

Allows shareholders to purchase unsubscribed shares in a rights offering at the subscription price.

Rights Offering

An opportunity for existing shareholders to purchase additional shares of a company at a predetermined price before the company offers them to the general public.

Underwriting Provision

A term in an agreement that outlines the responsibilities and risks taken by an underwriter in facilitating a public offering of securities.

Private Placements

A method of raising capital through the sale of securities to a small number of selected investors rather than through a public offering.