Please answer true or false and give a valid explanation.
1. Dividends paid reduce bank capital. The ability of the subsidiary banks of Wells Fargo Bank Holding Company to pay dividends in the future depends to a certain extent on regulatory capital rules.
a. True/False
2. If the yield curve flattens out then the spread between the yields a bank earns on its assets and the cost of funding these assets will decline.
a. True/False
3. Bank Holding Companies typically pay dividends to their bank subsidiaries. This is an important source of liquidity for banks.
a. True/False
4. The discount window at the Federal Reserve helps to relieve liquidity strains for individual depository institutions and for the banking system as a whole by providing a source of funding in time of need.
a. True/False
Please answer true or false and give a valid explanation.
1. Dividends paid reduce bank capital. The ability of the subsidiary banks of Wells Fargo Bank Holding Company to pay dividends in the future depends to a certain extent on regulatory capital rules.
a. True/False
2. If the yield curve flattens out then the spread between the yields a bank earns on its assets and the cost of funding these assets will decline.
a. True/False
3. Bank Holding Companies typically pay dividends to their bank subsidiaries. This is an important source of liquidity for banks.
a. True/False
4. The discount window at the Federal Reserve helps to relieve liquidity strains for individual depository institutions and for the banking system as a whole by providing a source of funding in time of need.
a. True/False
