Pro Banker Test 2025/2026 Exam
Questions and Answers 100%
Guaranteed Success | Already Rated A+
net interest margin - 🧠ANSWER ✔✔(Interest Income - Interest
Expense)/Total Assets
what actually happened regarding fed funds sold and discount window
advances? - 🧠ANSWER ✔✔my federal funds sold went up in Q3, so my
revenue was lower than it could have been if the money in Federal Funds
Sold were in other loans (with higher rates).
discount windows were still at zero, because I had enough deposits to
cover my assets
worry about Discount Window Advances? - 🧠ANSWER ✔✔YES
- discount window advances are chosen by ProBanker to balance sheet if
your other liabilities are insufficient to fund the assets you have purchased
,- this "bailout" is offered at a very high rate, and the bank MUST pay
- it is important to watch this because if you have too many loans and not
enough deposits and get put in 'discount window advances' then your profit
goes away veryyyyy quickly
worry about having too many Federal Funds Sold? - 🧠ANSWER ✔✔YES
- they earn an expected return equal to the riskless 90-day
- they are how much my bank is lending to other banks and financial
institutions through the Federal Funds market
- it is important to watch these because they are EXTREMELY LOW
YIELDING
- if you have too many 'loans' going to other banks, you will not be able to
make a profit
what decisions to make for interest rates charged on assets?
have specific numbers and support with evidence and logic - 🧠ANSWER
✔✔talk about elasticity, look at what happened in last quarters due to
elasticity and how you expect that to move in future quarter
, - Increase consumer loans by .3% to 11% bc even though loan demand is
elastic, and moving the rate up .3% will probably cause a decrease in
consumer loan volume, it will lead to an increase in interest revenue per
loan, that I believe will be better
what decisions to make for interest rates charged on deposits?
have specific numbers and support with evidence and logic - 🧠ANSWER
✔✔talk about elasticity and look at what has happened in previous quarters
and explain how that affects your decision and how I expect that to change
things in the future
- Overall the margin needed to be a little bigger so that the bank could
make more profit, I thought getting back to more standard deposit rates
would be a good thing to do
we like: - 🧠ANSWER ✔✔- assets with high yield
- liabilities with low cost
- increase in net income, ROA and ROE
what can bank do to increase their net income in future periods? -
🧠ANSWER ✔✔- loan demand is elastic and will change with rate changes.
keep this in mind when picking a deposit rate and loan rate.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Questions and Answers 100%
Guaranteed Success | Already Rated A+
net interest margin - 🧠ANSWER ✔✔(Interest Income - Interest
Expense)/Total Assets
what actually happened regarding fed funds sold and discount window
advances? - 🧠ANSWER ✔✔my federal funds sold went up in Q3, so my
revenue was lower than it could have been if the money in Federal Funds
Sold were in other loans (with higher rates).
discount windows were still at zero, because I had enough deposits to
cover my assets
worry about Discount Window Advances? - 🧠ANSWER ✔✔YES
- discount window advances are chosen by ProBanker to balance sheet if
your other liabilities are insufficient to fund the assets you have purchased
,- this "bailout" is offered at a very high rate, and the bank MUST pay
- it is important to watch this because if you have too many loans and not
enough deposits and get put in 'discount window advances' then your profit
goes away veryyyyy quickly
worry about having too many Federal Funds Sold? - 🧠ANSWER ✔✔YES
- they earn an expected return equal to the riskless 90-day
- they are how much my bank is lending to other banks and financial
institutions through the Federal Funds market
- it is important to watch these because they are EXTREMELY LOW
YIELDING
- if you have too many 'loans' going to other banks, you will not be able to
make a profit
what decisions to make for interest rates charged on assets?
have specific numbers and support with evidence and logic - 🧠ANSWER
✔✔talk about elasticity, look at what happened in last quarters due to
elasticity and how you expect that to move in future quarter
, - Increase consumer loans by .3% to 11% bc even though loan demand is
elastic, and moving the rate up .3% will probably cause a decrease in
consumer loan volume, it will lead to an increase in interest revenue per
loan, that I believe will be better
what decisions to make for interest rates charged on deposits?
have specific numbers and support with evidence and logic - 🧠ANSWER
✔✔talk about elasticity and look at what has happened in previous quarters
and explain how that affects your decision and how I expect that to change
things in the future
- Overall the margin needed to be a little bigger so that the bank could
make more profit, I thought getting back to more standard deposit rates
would be a good thing to do
we like: - 🧠ANSWER ✔✔- assets with high yield
- liabilities with low cost
- increase in net income, ROA and ROE
what can bank do to increase their net income in future periods? -
🧠ANSWER ✔✔- loan demand is elastic and will change with rate changes.
keep this in mind when picking a deposit rate and loan rate.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
