Lgbt Rights On The Bathroom It s A Big Deal Essay

Transgender Rights in the Bathroom: It’s a Big Deal Right now, in some states, transgender people are forbidden by the law to use the bathroom that they identify with. For some people, this comes as a shock; it is hard for them to believe that in modern society there are still such laws in place marginalizing a group of people. However, there are loud voices that still very much do not want to see transgender people protected by the law. In the age of human rights, in a country that claims to be free, it is time that transgender people are protected by federal laws and are able to use the bathroom of the gender that they identify with. If we do not protect transgender people, we will be putting the mental and physical health of transgender youth at risk; we will be enabling prejudice in schools; and we will be failing to protect transgender women from false abuse accusations. There are a few terms that one should be familiar with when discussing this topic. Gender is defined by cultural and social norms; while sex is defined by reprod uctive ability. The term â€Å"cisgender† refers to someone whose gender matches his or her born sex. The term is just beginning to be used in national vocabulary, but has not yet been added to all dictionaries. Time explains in an article titled â€Å"This Is What ‘Cisgender’ Means† that â€Å"the word exists to serve as an equal to transgender† (Steinmetz). Transgender is the term for people whose gender does not match their born sex. Whether or not theyShow MoreRelatedThe Bathroom Bill Should Not Be A Federally Mandated Law1496 Words   |  6 Pageseveryone has kept their eye out on North Carolina due to the House Bill 2, also known as the â€Å"bathroom bill,† they passed March 23rd of 2016. This particular bill requires Transgender people to use the restroom of the gender assigned to them at birth. It also â€Å"banned any minimum-wage increases or anti-discrimination statutes local governments might pass† (McCLELLAND 40). Not on ly did this aggravate the LGBT community, it has agitated many of their supporters, specially celebrities. The bill has causedRead MoreThe Gay Is Good Campaign1580 Words   |  7 PagesAmerica, in some way or another, has always had obstacles with segregation. It’s been happening since the beginning of time, but the biggest one was with black rights. In the mid-19th century, the â€Å"Jim Crow† law mandated the â€Å"separate but equal† status. African American’s had separate schools, churches, bathrooms, sections in restaurants, and they sat in different parts of the bus than Caucasians. Blacks were treated unfairly, and finally, after a hundred years of standing up for themselves, theyRead MoreLgbt Rights : Transgender Rights1480 Words   |  6 PagesTransgender Rights Cassidy Howell No one wants to feel like they do not belong or like they are not cared for. Transgender people are just like everyone else and deserve to be treated equally to cisgendered people, or people who identify as the gender they were given at birth. According to Sam Killerman, being transgendered means living as a member of a gender other than that expected based on sex assigned at birth. This definition is extremely important because a transgender person is still aRead MoreThe Psychological Factors Of The Bathroom Bill1279 Words   |  6 PagesPsychological Factors of the â€Å"Bathroom Bill† Next month will make a year that everyone has kept their eye out on North Carolina due to the House Bill 2, also known as the â€Å"bathroom bill,† they passed March 23rd of 2016. The particular bill requires transgender people to use the restroom of the gender assigned to them at birth. It also â€Å"banned any minimum-wage increases or anti-discrimination statutes local governments might pass† (McCLELLAND 40). Not only did this aggravate the LGBT community, it has agitatedRead MoreCoretta Scott, Not Just the Wife of Martin Luther King Jr. Essay1441 Words   |  6 Pagesabout the important things she did for this country? Coretta put her life in danger for believing what she supported and was right. Mrs. King also had programs to stay together with the community. She supported other people’s beliefs and doing that gave some people motivation that anything is possible. People also have to give her credit for even being Martin Luther King Jr.’s wife. His family had to go through a lot with him being an African American trying to change history. With that being saidRead MorePersuasive Essay On Transgender Women1891 Words   |  8 Pagestransgender women are defined as a woman. Every year the number of transgender women increases drastically and the suffrage they go through worsen as the days go by. Nevertheless, transgender women deal with people arguing about their rights, but I strongly believe that they should be given the right to be identified as the current gender that they are. I know there’s more than a thousand of people who would agree with me and im about to tell you why. Many factors contribute to the discriminationRead MoreMy First Relationship At The Age Of Fourteen Essay2223 Words   |  9 Pagescalling me a promiscuous female and a cheater I denied and that’s when he let his anger out on me and pushed me to his bedroom door holding me down with no one home to hear my boisterous screaming for help. I managed to run out of his room to the bathroom to call my sister for help, and in about half an hour she thumped on his house door to get me out. I managed to get out of the house, crying on my sister’s shoulders feeling like the world was against me. For several weeks I couldn t eat, sleepRead MoreA Comprehensive Analysis of Hyatt Hotels Corpor ation and How It Relates to Competition Within the Hotel Industry27390 Words   |  110 Pages| gt;65 | gt;70 | Baby Boomer | 45-64 | 51-69 | Generation X | 30-44 | 37-50 | Generation Y | lt;30 | lt;36 | (Source: Deloitte Research, 2010) Mature - over 65 years old - consumers will be looking for price deals and freebies to limit their spending. Generation X is becoming the driving force in family travel and is entering into its peak earning years. The discerning Generation Y is providing to be brand loyal when its expectations are exceeded and this

The Public Perceptions Of Animal Research - 1303 Words

Ignorance is bliss. Animal research is one of those topics that, for most of us, we try not to think about. Most people recognize it as a necessity, but few accept it without hesitation. When asked about the subject of animal research people ponder the topic, and then want clarification. â€Å"What exactly is animal research?† â€Å"Is it animal testing?† â€Å"Where is the line between research/testing and cruelty?† The most common phrase I heard was â€Å"necessary evil.† We know that is goes on, but we aren’t completely comfortable knowing the details. Most people seemed to operate under the â€Å"out of sight, out of mind† mentality. But, once the questions are answered, and we stop skirting around the topic, and really ask ourselves how we feel about it. Where do we fall on the spectrum of acceptance? There have been many studies and poles that look at the public perceptions on animal research. The Gallup survey on Values and Beliefs sta rted collecting data here in the United States in 2001. They ask a simple question: Is medical testing on animals morally acceptable, or morally wrong? And in ten years they have watch the morally wrong numbers climb ten points. There are many reasons why this may be occurring, and one of the bigger drivers of that rise may be the increase in social media. A soapbox for those who want to be heard. Animal protection groups have, very successfully, utilized social media to spread their message. Celebrity endorsements of these groups also fuel the fire of theirShow MoreRelatedAnimal Experiments And Its Effects On Human Suffering And Improve The Quality Of Human Life826 Words   |  4 Pagespeople support animal experiment and believed the results of those testings can ease human suffering and improve the quality of human life (Kruse, 2001). Many medical achievements in the past century have depended directly or indirectly on animal researches. The develop of the treatment of diabetes, leukaemia and heart surgery transplants have been made possible largely through the use of animals in scientific researches. And 90% of the public accepted the need for the use of animals when certain researchRead MoreHuman Nature : Humans And Humans928 Words   |  4 Pagesshaping civilization. Animals, domesticated animals in particular, have not received proper credit for all they have done in shaping, developing and organizing society. As well as having an effect on the evolution and development of society, nonhuman animals undoubtably also have a significant effect on the way in which human beings interact. The social relationship between animals and humans will be examined, along with the social meanings that shape the role and status of animals in society. The relationshipsRead MoreThe Dairy Farmer, The Perception That The Public Has Affected Their Overall Wellbeing As A Company Essay1358 Words   |  6 PagesIntroduction For the modern dairy farmer, the perception that the public has regarding the industry has a significant impact on their overall wellbeing as a company. However, most people in modern society have little personal experience with farming, and their opinions are often based on second-hand information (Boogaard et al. 2010). In general people are more concerned with the welfare of the animals and want them to be able to display natural behaviours like grazing on pasture for most of theRead MoreAnimal Testing Should Not Be Banned860 Words   |  4 PagesIntroduction The use of animals in research has created a diverse range of attitudes, as some individuals support the use of animals in research and others are against it. Sometimes people do not have enough background knowledge on this topic to be involved in a discussion of animal testing. Animal testing dates back to around 400 years ago, when one of the first famous researchers William Harvey was curious to discover how blood circulates around the body. The modern era of animal testing began aroundRead MoreAnimal Testing Should Not Be Banned1278 Words   |  6 PagesAnimal testing or animal experimentation is the use of non-human species such as animals, in experiments to test the affect of controlled variables on the subjects behaviour or physical appearance. The use of animal testing in science is a controversial issue that has divided the public for many centuries; between immense passion and emotion from those opposing the practice, and those that preach its integral part in the advancem ent of science. The divide in the topic is between the scientific communityRead MoreAnimal Testing Should Be Banned1603 Words   |  7 Pages Animal Testing Animal testing is conducted every day for scientific research. About twenty-five million animals participate in experiments annually. These tests occur in order to determine how chemicals or products can affect a human body. Although the use of the animals has advanced scientific research, there is a worldwide debate on the belief that the use of animals in experiments is immoral. The US government did not require animal testing until a drug, elixir sulfanilamide, was put into certainRead MoreAnimal Abuse Is The Act Of Cruelty And Infliction Of Pain On Non Human Animals1120 Words   |  5 Pages1 Jonathan Corbin Ms. Powell English 1020 5 Nov, 2015 Animal Abuse Animal abuse is the act of cruelty and infliction of pain on non-human animals. Dogs are the most common victims of the abuse. How do you feel about people abusing poor, innocent animals? I strongly believe there should be a greater punishment for the crimes committed.The controversy has grown greatly in the last few years with the increase of most abuse cases. Animal rights activists are working hard to bring success intoRead MoreAnimal Testing Persuasive Essay1694 Words   |  7 Pages About 19,500,000 animals in total are killed in scientific research every year. This means that about twenty percent of the animals tested on each year die, which may not seem like a large percentage; however, if it is taken into account that this happens to the same species in an endless cycle, the numbers can begin to build. Although, through this process of testing, many lifesaving medicines have been created for all types of animals including humans. So, the issue the world is experiencing rightRead MoreStructure Of The Research: .Definition Of Brand Trust1494 Words   |  6 Pages Structure of the research: Definition of brand trust; Reasons for low brand trust in the marketing channels. What is brand misconduct according to the consumers? Brand equity’s and brand credibility’s role in building and maintaining brand trust; Negative publicity ; Reputational capital; Conclusion; Definition of brand trust: The human beings naturally seek fellows to trust, moreover the trust is the only bridge toward building any kind of relationship. The definition of trust, accordingRead MoreThe Medical Disaster Associated With Thalidomide Administration1231 Words   |  5 PagesINTRODUCTION In 1952, a drug named K17 was being developed in post-war Switzerland by drug company Ciba. Although intended for animals, it showed no effects on animals. This drug would be later developed by Chemie Grunenthal and be marketed as thalidomide, a mild sedative (alpha-phthalimido-glutarimide). Thalidomide would later go on to be primarily responsible for the deformity (Phocomelia) of tens of thousands of children across the world. The aim of this study is to highlight the medical disaster

Rational Choice Theory and Religion †Free Samples to Students

Question: Discuss about the Rational Choice Theory and Religion. Answer: Introduction: Religion is a broad field of study. Religion has many different views. There are different believers of different religion. Religion offers various beliefs and various thoughts. It varies from person to person and it varies within different communities. The religion is defined by different people in different manner. It is included in the academic curriculum in order to highlight the unidentified angle of religion. In the academic curriculum religion is described as the way of living life. The historical aspects related to the religion is being taught in the academic syllabus. While studying the religion in the academic course the people are not concerned whether the claims made are genuine or not. Apart from this the academic curriculum does not compel the students to join that particular religion. In the curriculum religion is studied as a historical, social and cultural phenomenon. The academic curriculum teaches the student how religion affects history, culture, politics and the social norms. The essay however presents a critical thought on the students who are involved in the study of religion has more advantage than the students who are not in the study of religion[1]. The students who are in the study of religion learns to be more rational and they learn to be more practical. They develop certain skills like they understand the skill of thoroughly understanding the religious practices and beliefs. The students develops the thought of the reason of the importance of the religion to the religious community and the society. It enables the students to the cultural context that makes the individuals to react either negatively or positively to the belief or the practices that prevails. The academic knowledge enables the students to judge the practice whether the practice is justified or not. The students are exposed to the social and the psychological aspects of religion[2]. The students who are aloof form the study of religion are not aware of the practical reasoning power of the religion. They are not aware of the fact that there are certain psychological reasons behind every religion. They are not exposed to the cultural reasons of following a certai n religion. Studying the religion as an outsider brings out more possibilities to the concept of religion. The study of religion brings out an outsider view. This is the reason studying religion in the outsider setting is important[3]. The students who are not in the study of religion are not aware of the different angle that are attached to the religion. They believe in a particular religion without knowing the practical reasons that are attached to the belief of the particular religion. Religion is seen by them form a superstitious angle. They treat religion as a means to end. The students who are not in touch with the appropriate study of religion misinterpret the religious texts and they fail to understand the real meaning of the text. The religious texts does not force the individuals to obey the laws. It gives practical and scientific justification of maintaining the aspects that are necessary to live in the society[4]. The students who are not in touch with the study of religion are unable to know the real reasons of believing in religion and the reason of leading the life in the way it is mentioned in the religious texts. Moreover the study of religion makes the students aware of the global culture and glob al religion. The students who are not in touch with the study of religion are not able to have global thoughts and they fail to realize the scope that the other religions have[5]. The students who are involved in the study of religion have the capacity to turn their childish thoughts into mature thoughts. They have the capacity to turn the darkness into light. The most important thing that the students are able to gain by seeking the religious knowledge is they will be able to make the world a better place to live in[6]. It has been observed in the recent times that there are many religious organizations who claim to have the authentic religious knowledge and they have the power to influence others to believe in a certain religion. The religious communities takes the advantage of the illiteracy among the people and they target those who are not literate enough. The religious communities commit the crime under the title of religion. They try to convince the people that they got the instruction from God and that it is written in the holy texts[7]. The students who are not in touch with the religious subject might believe the same and they might commit the crime as well. The person who will go through the religious texts thoroughly or will do an effective research on religion will know the difference between the right and the wring and can challenge the sayings of the communities. This would enable the students to make the world a better place to live in. The other advantage of getting involved in the study of the religion it can be dealt as the extreme power. Attaining knowledge is equivalent of attaining power. Attaining religious knowledge is the same. The knowledge about the religious cultures and religious lives makes it as one of the most powerful social as well as cultural forces in the human history. It makes the students realize that religion is present everywhere and it always remains integral to the cultures of the human beings. It develops a spiritual self-knowledge of the students who are involved in the study of religion[8]. Therefore this can be concluded by saying that the real motive of the study of religion is developing the personalities of the students and to make the students practical and rational. The reasoning power of the students are sharpened with study of religion. This is the reason the students who acquire the correct knowledge of religion is always on the advantageous side as they are not compelled to blindly follow the religion but they are exposed to different truths of the religion. This is the reason they must be studied. References Beidelman, Thomas O.W. Robertson Smith and the sociological study of religion. Wipf and Stock Publishers, 2016. Esack, Faird. "Redeeming Islam: Constructing the Good Muslim Subject in the Contemporary Study of Religion."Alternation Journal11 (2017): 36-60. Furseth, Inger, and Pl Repstad.An introduction to the sociology of religion: Classical and contemporary perspectives. Routledge, 2017. Guyau, Jean-Marie.The non-religion of the future: A sociological study. Vol. 39. HENRY HOLT AND COMPANY, 2015. Iannaccone, Laurence R. "Rational choice."Rational choice theory and religion: summary and assessment(2016). Klass, Morton.Ordered universes: Approaches to the anthropology of religion. Routledge, 2018. Lovejoy, Arthur.The great chain of being: A study of the history of an idea. Routledge, 2017. Mitchell, Claire.Religion, identity and politics in Northern Ireland: Boundaries of belonging and belief. Routledge, 2017.

Protein and Skill Essay Example

Protein and Skill Paper The Structure and Function of Large Biological Molecules In Chapter 5, the principles of chemistry covered in earlier chapters are applied to the understanding of biological polymers and lipid membranes. The emphasis is on properly linking monomers and their polymers, and on the structural and functional diversity of the different polymer types. Particular attention is given to protein structure, because this is central to understanding subsequent chapters on metabolism, molecular biology, and molecular medicine. Multiple-Choice Questions 1) Humans and mice differ because A) their cells have different small organic molecules. B) their cells make different types of large biological molecules. C) their cells make different types of lipids. D) their cells have some differences in the sequence of nucleotides in their nucleic acids. E) their cells make different types of proteins. Answer: D Topic: Concept 5. 1 Skill: Knowledge/Comprehension 2) Molecules with which functional groups may form polymers via dehydration reactions? A) hydroxyl groups B) carbonyl groups C) carboxyl groups D) either carbonyl or carboxyl groups E) either hydroxyl or carboxyl groups Answer: E Topic: Concepts 5. 1, 4. 3 Skill: Application/Analysis 3) Which of these molecules is not formed by dehydration reactions? A) fatty acids B) disaccharides C) DNA D) protein E) amylose Answer: A Topic: Concept 5. 1 Skill: Knowledge/Comprehension 4) In animal metabolism, most of the monomers released by digestion of food macromolecules are metabolized to provide energy. Only a small portion of these monomers are used for synthesis of new macromolecules. The net result is that A) water is generated by animal metabolism. B) water is consumed by animal metabolism. C) the water consumed is exactly balanced by the water generated, to maintain homeostasis. We will write a custom essay sample on Protein and Skill specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Protein and Skill specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Protein and Skill specifically for you FOR ONLY $16.38 $13.9/page Hire Writer D) water is consumed during homeostasis, but water is generated during periods of growth. E) water is generated during homeostasis, but water is consumed during periods of growth. Answer: B Topic: Concept 5. 1 Skill: Application/Analysis 5) Which of these classes of biological molecules consist of both small molecules and macromolecular polymers? A) lipids B) carbohydrates C) proteins D) nucleic acids E) lipids, carbohydrates, proteins, and nucleic acids all consist of only macromolecular polymers Answer: B Topic: Concept 5. 1 Skill: Knowledge/Comprehension 6) Which of the following is not a polymer? A) glucose B) starch C) cellulose D) chitin E) DNA Answer: A Topic: Concept 5. 1 Skill: Knowledge/Comprehension 7) What is the chemical reaction mechanism by which cells make polymers from monomers? A) phosphodiester linkages B) hydrolysis C) dehydration reactions D) ionic bonding of monomers E) the formation of disulfide bridges between monomers Answer: C Topic: Concept 5. 1 Skill: Knowledge/Comprehension 8) How many molecules of water are needed to completely hydrolyze a polymer that is 11 monomers long? A) 12 B) 11 C) 10 D) 9 E) 8 Answer: C Topic: Concept 5. 1 Skill: Knowledge/Comprehension ) Which of the following best summarizes the relationship between dehydration reactions and hydrolysis? A) Dehydration reactions assemble polymers, and hydrolysis reactions break down polymers. B) Dehydration reactions eliminate water from lipid membranes, and hydrolysis makes lipid membranes water permeable. C) Dehydration reactions can occur only after hydrolysis. D) Hydrolysis creates monome rs, and dehydration reactions break down polymers. E) Dehydration reactions ionize water molecules and add hydroxyl groups to polymers; hydrolysis reactions release hydroxyl groups from polymers. Answer: A Topic: Concept 5. Skill: Knowledge/Comprehension 10) Which of the following polymers contain nitrogen? A) starch B) glycogen C) cellulose D) chitin E) amylopectin Answer: D Topic: Concept 5. 2 Skill: Knowledge/Comprehension 11) The molecular formula for glucose is C6H12O6. What would be the molecular formula for a molecule made by linking three glucose molecules together by dehydration reactions? A) C18H36O18 B) C18H32O16 C) C6H10O5 D) C18H10O15 E) C3H6O3 Answer: B Topic: Concept 5. 2 Skill: Application/Analysis 12) The enzyme amylase can break glycosidic linkages between glucose monomers only if the monomers are the ? orm. Which of the following could amylase break down? A) glycogen B) cellulose C) chitin D) glycogen and chitin only E) glycogen, cellulose, and chitin Answer: A To pic: Concept 5. 2 Skill: Knowledge/Comprehension 13) On food packages, to what does the term insoluble fiber refer? A) cellulose B) polypeptides C) starch D) amylopectin E) chitin Answer: A Topic: Concept 5. 2 Skill: Knowledge/Comprehension 14) A molecule with the chemical formula C6H12O6 is probably a A) carbohydrate. B) lipid. C) monosaccharide D) carbohydrate and lipid only. E) carbohydrate and monosaccharide only. Answer: E Topic: Concept 5. 2 Skill: Knowledge/Comprehension 15) Lactose, a sugar in milk, is composed of one glucose molecule joined by a glycosidic linkage to one galactose molecule. How is lactose classified? A) as a pentose B) as a hexose C) as a monosaccharide D) as a disaccharide E) as a polysaccharide Answer: D Topic: Concept 5. 2 Skill: Knowledge/Comprehension 16) All of the following are polysaccharides except A) lactose. B) glycogen. C) chitin. D) cellulose. E) amylopectin. Answer: A Topic: Concept 5. 2 Skill: Knowledge/Comprehension 17) Which of the following is true of both starch and cellulose? A) They are both polymers of glucose. B) They are cis-trans isomers of each other. C) They can both be digested by humans. D) They are both used for energy storage in plants. E) They are both structural components of the plant cell wall. Answer: A Topic: Concept 5. 2 Skill: Knowledge/Comprehension 18) Which of the following is true of cellulose? A) It is a polymer composed of enantiomers of glucose. B) It is a storage polysaccharide for energy in plant cells. C) It is digestible by bacteria in the human gut. D) It is a major structural component of plant cell walls. E) It is a polymer composed of enantiomers of glucose, it is a storage polysaccharide for energy in plant cells, it is digestible by bacteria in the human gut, and it is a major structural component of plant cell walls. Answer: D Topic: Concept 5. 2 Skill: Knowledge/Comprehension 19) Humans can digest starch but not cellulose because A) the monomer of starch is glucose, while the monomer of cellulose is galactose. B) humans have enzymes that can hydrolyze the ? glycosidic linkages of starch but not the ? glycosidic linkages of cellulose. C) humans have enzymes that can hydrolyze the ? glycosidic linkages of starch but not the ? lycosidic linkages of cellulose. D) humans harbor starch-digesting bacteria in the digestive tract. E) the monomer of starch is glucose, while the monomer of cellulose is glucose with a nitrogen-containing group. Answer: C Topic: Concept 5. 2 Skill: Knowledge/Comprehension 20) Which of the following statements concerning saturated fats is not true? A) They are more common in animals than in plants. B) They have multiple double bonds in the carbon chains of their fatty acids. C) They generally solidify at room temperature. D) They contain more hydrogen than unsaturated fats having the same number of carbon atoms. E) They are one of several factors that contribute to atherosclerosis. Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 21) A molecule with the formula C18H36O2 is probably a A) carbohydrate. B) fatty acid. C) protein. D) nucleic acid. E) hydrocarbon. Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 22) Which of the following statements is true for the class of biological molecules known as lipids? A) They are insoluble in water. B) They are made from glycerol, fatty acids, and phosphate. C) They contain less energy than proteins and carbohydrates. D) They are made by dehydration reactions. E) They contain nitrogen. Answer: A Topic: Concept 5. 3 Skill: Knowledge/Comprehension 23) The label on a container of margarine lists hydrogenated vegetable oil as the major ingredient. What is the result of adding hydrogens to vegetable oil? A) The hydrogenated vegetable oil has a lower melting point. B) The hydrogenated vegetable oil stays solid at room temperature. C) The hydrogenated vegetable oil has more kinks in the fatty acid chains. D) The hydrogenated vegetable oil has fewer trans fatty acids. E) The hydrogenated vegetable oil is less likely to clog arteries. Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 4) Which of the following is true regarding saturated fatty acids? A) They are the predominant fatty acid in corn oil. B) They have double bonds between carbon atoms of the fatty acids. C) They are the principal molecules in lard and butter. D) They are usually liquid at room temperature. E) They are usually produced by plants. Answer: C Topic: Concept 5. 3 Skill: Knowledge/Comprehension 25) Large organic molecules are usually assembled by polymerization of a few kinds of simple subunits. Which of the following is an exception to this statement? A) a steroid B) cellulose C) DNA D) an enzyme E) a contractile protein Answer: A Topic: Concepts 5. 1-5. 3 Skill: Knowledge/Comprehension 26) Which modifications of fatty acids will best keep triglycerides solid at warmer temperatures? A) creating cis double bonds to the fatty acids B) adding hydrogens to the fatty acids C) creating trans double bonds to the fatty acids D) adding hydrogens and trans double bonds to the fatty acids E) adding cis double bonds and trans double bonds to the fatty acids Answer: D Topic: Concept 5. 3 Skill: Application/Analysis 27) Why are human sex hormones considered to be lipids? A) They are essential components of cell membranes. B) They are not soluble in water. C) They are made of fatty acids. D) They are hydrophilic compounds. E) They contribute to atherosclerosis. Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 28) All of the following contain amino acids except A) hemoglobin. B) cholesterol. C) antibodies. D) enzymes. E) insulin. Answer: B Topic: Concepts 5. 3, 5. 4 Skill: Knowledge/Comprehension 29) The bonding of two amino acid molecules to form a larger molecule requires A) the release of a water molecule. B) the release of a carbon dioxide molecule. C) the addition of a nitrogen atom. D) the addition of a water molecule. E) the release of a nitrous oxide molecule. Answer: A Topic: Concept 5. 4 Skill: Knowledge/Comprehension 30) There are 20 different amino acids. What makes one amino acid different from another? A) different side chains (R groups) attached to a carboxyl carbon B) different side chains (R groups) attached to the amino groups C) different side chains (R groups) attached to an ? carbon D) different structural and optical isomers E) different asymmetric carbons Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 31) The bonding of two amino acid molecules to form a larger molecule requires which of the following? A) removal of a water molecule B) addition of a water molecule C) formation of a glycosidic bond D) formation of a hydrogen bond E) both removal of a water molecule and formation of a hydrogen bond Answer: A Topic: Concept 5. 4 Skill: Knowledge/Comprehension 32) Polysaccharides, triacylglycerides, and proteins are similar in that they A) are synthesized from monomers by the process of hydrolysis. B) are synthesized from subunits by dehydration reactions. C) are synthesized as a result of peptide bond formation between monomers. D) are decomposed into their subunits by dehydration reactions. E) all contain nitrogen in their monomer building blocks. Answer: B Topic: Concepts 5. 1-5. 4 Skill: Application/Analysis 33) Dehydration reactions are used in forming which of the following compounds? A) triacylglycerides B) polysaccharides C) proteins D) triacylglycerides and proteins only E) triacylglycerides, polysaccharides, and proteins Answer: E Topic: Concepts 5. 1-5. 4 Skill: Knowledge/Comprehension 34) Upon chemical analysis, a particular polypeptide was found to contain 100 amino acids. How many peptide bonds are present in this protein? A) 101 B) 100 C) 99 D) 98 E) 97 Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 5) What aspects of protein structure are stabilized or assisted by hydrogen bonds? A) primary structure B) secondary structure C) tertiary structure D) quaternary structure E) secondary, tertiary, and quaternary structures, but not primary structure Answer: E Topic: Concept 5. 4 Skill: Knowledge/Comprehension 36) How many different kinds of polypeptides, each composed of 12 amino acids, could be synthesiz ed using the 20 common amino acids? A) 412 B) 1220 C) 240 D) 20 E) 2012 Answer: E Topic: Concept 5. 4 Skill: Application/Analysis 37) Which bonds are created during the formation of the primary structure of a protein? A) peptide bonds B) hydrogen bonds C) disulfide bonds D) phosphodiester bonds E) peptide bonds, hydrogen bonds, and disulfide bonds Answer: A Topic: Concept 5. 4 Skill: Knowledge/Comprehension 38) What maintains the secondary structure of a protein? A) peptide bonds B) hydrogen bonds between the amino group of one peptide bond and the carboxyl group of another peptide bond C) disulfide bonds D) hydrophobic interactions E) hydrogen bonds between the R groups Answer: B Topic: Concept 5. 4 Skill: Knowledge/Comprehension 39) Which type of interaction stabilizes the ? helix and the ? leated sheet structures of proteins? A) hydrophobic interactions B) disulfide bonds C) ionic bonds D) hydrogen bonds E) peptide bonds Answer: D Topic: Concept 5. 4 Skill: Knowledge/Comprehension 40) Which level of protein structure do the ? helix and the ? pleated sheet represent? A) primary B) secondary C) tertiary D) quaternary E) primary, secondary, tertiary, and quaternary Answer: B Topic: Concept 5. 4 Sk ill: Knowledge/Comprehension 41) The amino acids of the protein keratin are arranged predominantly in an ? helix. This secondary structure is stabilized by A) covalent bonds. B) peptide bonds. C) ionic bonds. D) polar bonds. E) hydrogen bonds. Answer: E Topic: Concept 5. 4 Skill: Knowledge/Comprehension 42) The tertiary structure of a protein is the A) bonding together of several polypeptide chains by weak bonds. B) order in which amino acids are joined in a polypeptide chain. C) unique three-dimensional shape of the fully folded polypeptide. D) organization of a polypeptide chain into an ? helix or ? pleated sheet. E) overall protein structure resulting from the aggregation of two or more polypeptide subunits. Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 3) What type of covalent bond between amino acid side chains (R groups) functions in maintaining a polypeptides specific three-dimensional shape? A) ionic bond B) hydrophobic interaction C) van der Waals interaction D) disulfide bond E) hydrogen bond Answer: D Topic: Concept 5. 4 Skill: Knowledge/Comprehension 44) At which level of protein structure are interactions between the side chains (R groups) most important? A) primary B) secondary C) tertiary D) quaternary E) all of the above Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 45) The R group or side chain of the amino acid serine is –CH2–OH. The R group or side chain of the amino acid leucine is –CH2–CH–(CH3)2. Where would you expect to find these amino acids in a globular protein in aqueous solution? A) Serine would be in the interior, and leucine would be on the exterior of the globular protein. B) Leucine would be in the interior, and serine would be on the exterior of the globular protein. C) Both serine and leucine would be in the interior of the globular protein. D) Both serine and leucine would be on the exterior of the globular protein. E) Both serine and leucine would be in the interior and on the exterior of the globular protein. Answer: B Topic: Concept 5. Skill: Application/Analysis 46) Misfolding of polypeptides is a serious problem in cells. Which of the following diseases are associated with an accumulation of misfolded polypeptides? A) Alzheimers only B) Parkinsons only C) diabetes mellitus only D) Alzheimers and Parkinsons only E) Alzheimers, Parkinsons, and diabetes mellitus Answer: D Topic: Concept 5. 4 Skill: Knowledge/Comprehension 47) Changing a single amino acid in a protein consisting of 325 amino acids would A) alter the primary structure of the protein, but not its tertiary structure or function. B) cause the tertiary structure of the protein to unfold. C) always alter the biological activity or function of the protein. D) always alter the primary structure of the protein and disrupt its biological activity. E) always alter the primary structure of the protein, sometimes alter the tertiary structure of the protein, and affect its biological activity. Answer: E Topic: Concept 5. 4 Skill: Application/Analysis 48) Normal hemoglobin is a tetramer, consisting of two molecules of ? hemoglobin and two molecules of ? hemoglobin. In sickle-cell disease, as a result of a single amino acid change, the mutant hemoglobin tetramers associate with each other and assemble into large fibers. Based on this information alone, we can conclude that sickle-cell hemoglobin exhibits A) altered primary structure. B) altered secondary structure. C) altered tertiary structure. D) altered quaternary structure. E) altered primary structure and altered quaternary structure; the secondary and tertiary structures may or may not be altered. Answer: E Topic: Concept 5. 4 Skill: Application/Analysis 49) What methods may be used to elucidate the structures of purified proteins? A) X-ray crystallography B) bioinformatics C) analysis of amino acid sequence of small fragments D) NMR spectroscopy E) both X-ray crystallography and NMR spectroscopy Answer: E Topic: Concept 5. 4 Skill: Knowledge/Comprehension 50) In a normal cellular protein, where would you expect to find a hydrophobic amino acid like valine? A) in the interior of the folded protein, away from water B) on the exterior surface of the protein, interacting with water C) in the transmembrane portion interacting with lipid fatty acid chains D) in the interior of the folded protein, away from water, or in a transmembrane portion interacting with lipid fatty acid chains E) anywhere in the protein, with equal probability Answer: D Topic: Concept 5. 4 Skill: Application/Analysis 51) Which of the following techniques uses the amino acid sequences of polypeptides to predict a proteins three-dimensional structure? A) X-ray crystallography B) bioinformatics C) analysis of amino acid sequence of small fragments D) NMR spectroscopy E) high-speed centrifugation Answer: B Topic: Concept 5. 4 Skill: Knowledge/Comprehension 52) If cells are grown in a medium containing radioactive 35S, which of these molecules will be labeled? A) phospholipids B) nucleic acids C) proteins D) amylose E) both proteins and nucleic acids Answer: C Topic: Concept 5. 4 Skill: Application/Analysis 3) What is the term used for a protein molecule that assists in the proper folding of other proteins? A) tertiary protein B) chaperonin C) enzyme protein D) renaturing protein E) denaturing protein Answer: B Topic: Concept 5. 4 Skill: Knowledge/Comprehension 54) DNAase is an enzyme that catalyzes the hydrolysis of the covalent bonds that join nucleotides together. What w ould first happen to DNA molecules treated with DNAase? A) The two strands of the double helix would separate. B) The phosphodiester bonds between deoxyribose sugars would be broken. C) The purines would be separated from the deoxyribose sugars. D) The pyrimidines would be separated from the deoxyribose sugars. E) All bases would be separated from the deoxyribose sugars. Answer: B Topic: Concepts 5. 1, 5. 5 Skill: Knowledge/Comprehension 55) Which of the following statements about the 5 end of a polynucleotide strand of DNA is correct? A) The 5 end has a hydroxyl group attached to the number 5 carbon of ribose. B) The 5 end has a phosphate group attached to the number 5 carbon of ribose. C) The 5 end has phosphate attached to the number 5 carbon of the nitrogenous base. D) The 5 end has a carboxyl group attached to the number 5 carbon of ribose. E) The 5 end is the fifth position on one of the nitrogenous bases. Answer: B Topic: Concept 5. 5 Skill: Knowledge/Comprehension 56) One of the primary functions of RNA molecules is to A) transmit genetic information to offspring. B) function in the synthesis of proteins. C) make a copy of itself, thus ensuring genetic continuity. D) act as a pattern or blueprint to form DNA. E) form the genes of higher organisms. Answer: B Topic: Concept 5. 5 Skill: Knowledge/Comprehension 57) If 14C-labeled uridine triphosphate is added to the growth medium of cells, what macromolecules will be labeled? A) phospholipids B) DNA C) RNA D) both DNA and RNA E) proteins Answer: C Topic: Concept 5. 5 Skill: Application/Analysis 58) Which of the following descriptions best fits the class of molecules known as nucleotides? A) a nitrogenous base and a phosphate group B) a nitrogenous base and a pentose sugar C) a nitrogenous base, a phosphate group, and a pentose sugar D) a phosphate group and an adenine or uracil E) a pentose sugar and a purine or pyrimidine Answer: C Topic: Concept 5. 5 Skill: Knowledge/Comprehension 59) Which of the following are nitrogenous bases of the pyrimidine type? A) guanine and adenine B) cytosine and uracil C) thymine and guanine D) ribose and deoxyribose E) adenine and thymine Answer: B Topic: Concept 5. 5 Skill: Knowledge/Comprehension 60) Which of the following are nitrogenous bases of the purine type? A) cytosine and guanine B) guanine and adenine C) adenine and thymine D) thymine and uracil E) uracil and cytosine Answer: B Topic: Concept 5. 5 Skill: Knowledge/Comprehension 61) If a DNA sample were composed of 10% thymine, what would be the percentage of guanine? A) 10 B) 20 C) 40 D) 80 E) impossible to tell from the information given Answer: C Topic: Concept 5. 5 Skill: Application/Analysis 2) A double-stranded DNA molecule contains a total of 120 purines and 120 pyrimidines. This DNA molecule could be composed of A) 120 adenine and 120 uracil molecules. B) 120 thymine and 120 adenine molecules. C) 120 cytosine and 120 thymine molecules. D) 120 adenine and 120 cytosine molecules. E) 120 guanine and 120 thymine molecules. Answer: B Topic: Concept 5. 5 Skill: Application/Analysis 63) The difference between the sugar in DNA and the sugar in RNA is that the sugar in DNA A) is a six-carbon sugar and the sugar in RNA is a five-carbon sugar. B) can form a double-stranded molecule. C) is an aldehyde sugar and the sugar in RNA is a keto sugar. D) is in the ? configuration and the sugar in RNA is in the ? configuration. E) contains one less oxygen atom. Answer: E Topic: Concepts 5. 2, 5. 5 Skill: Knowledge/Comprehension 64) Which of the following statements best summarizes the differences between DNA and RNA? A) DNA encodes hereditary information, whereas RNA does not. B) The bases in DNA form base-paired duplexes, whereas the bases in RNA do not. C) DNA nucleotides contain a different sugar than RNA nucleotides. D) DNA contains the base uracil, whereas RNA contains the base thymine. E) DNA encodes hereditary information, whereas RNA does not; the bases in DNA form base-paired duplexes, whereas the bases in RNA do not; and DNA nucleotides contain a different sugar than RNA nucleotides. Answer: C Topic: Concept 5. 5 Skill: Knowledge/Comprehension 65) If one strand of a DNA molecule has the sequence of bases 5ATTGCA3, the other complementary strand would have the sequence A) 5TAACGT3. B) 5TGCAAT3. C) 5UAACGU3. D) 3UAACGU5. E) 5UGCAAU3. Answer: B Topic: Concept 5. 5 Skill: Application/Analysis 66) What is the structural feature that allows DNA to replicate? A) sugar-phosphate backbone B) complementary pairing of the nitrogenous bases C) disulfide bonding (bridging) of the two helixes D) twisting of the molecule to form an ? helix E) three-component structure of the nucleotides Answer: B Topic: Concept 5. 5 Skill: Knowledge/Comprehension 67) A new organism is discovered in the forests of Costa Rica. Scientists there determine that the polypeptide sequence of hemoglobin from the new organism has 72 amino acid differences from humans, 65 differences from a gibbon, 49 differences from a rat, and 5 differences from a frog. These data suggest that the new organism A) is more closely related to humans than to frogs. B) is more closely related to frogs than to humans. C) evolved at about the same time as frogs, which is much earlier than primates and mammals. D) is more closely related to humans than to rats. E) is more closely related to frogs than to humans and also evolved at about the same time as frogs, which is much earlier than primates and mammals. Answer: B Topic: Concept 5. 5 Skill: Application/Analysis 68) Which of the following is an example of hydrolysis? A) the reaction of two monosaccharides, forming a disaccharide with the release of water B) the synthesis of two amino acids, forming a peptide with the release of water C) the reaction of a fat, forming glycerol and fatty acids with the release of water D) the reaction of a fat, forming glycerol and fatty acids with the consumption of water E) the synthesis of a nucleotide from a phosphate, a pentose sugar, and a nitrogenous base with the production of a molecule of water Answer: D Topic: Concepts 5. 1-5. 4 Skill: Knowledge/Comprehension 9) If cells are grown in a medium containing radioactive 32P-labeled phosphate, which of these molecules will be labeled? A) phospholipids B) nucleic acids C) proteins D) amylose E) both phospholipids and nucleic acids Answer: E Topic: Concepts 5. 2-5. 5 Skill: Application/Analysis 70) If cells are grown in a medium containing radioactive 15N, which of these molecules will be labeled? A) fatty acids only B) nucleic acids only C) proteins only D) amy lase only E) both proteins and nucleic acids Answer: E Topic: Concepts 5. 2-5. 5 Skill: Application/Analysis 1) How will brief heating (to 95 °C) affect macromolecular structures in aqueous solution? A) DNA duplexes will unwind and separate. B) Proteins will unfold (denature). C) Starch will hydrolyze into monomeric sugars. D) Proteins will hydrolyze into amino acids. E) DNA duplexes will unwind and separate, and proteins will unfold (denature). Answer: E Topic: Concepts 5. 2, 5. 4, 5. 5 Skill: Application/Analysis 72) Which of the following is not a monomer/polymer pairing? A) monosaccharide/polysaccharide B) amino acid/protein C) triglyceride/phospholipid bilayer D) deoxyribonucleotide/DNA E) ribonucleotide/RNA Answer: C Topic: Concepts 5. 2-5. 5 Skill: Knowledge/Comprehension Art Questions [pic] Figure 5. 1 73) If two molecules of the general type shown in Figure 5. 1 were linked together, carbon-1 of one molecule to carbon-4 of the other, the single molecule that would result would be A) maltose. B) fructose. C) glucose. D) galactose. E) sucrose. Answer: A Topic: Concept 5. 2 Skill: Knowledge/Comprehension 74) Which of the following descriptors is true of the molecule shown in Figure 5. 1? A) hexose B) fructose C) glucose D) hexose and fructose only E) hexose and glucose only Answer: E Topic: Concept 5. Skill: Knowledge/Comprehension [pic] Figure 5. 2 75) Which of the following statements is true regarding the molecule illustrated in Figure 5. 2? A) It is a saturated fatty acid. B) A diet rich in this molecule may contribute to atherosclerosis. C) Molecules of this type are usually liquid at room temperature. D) It is a saturated fatty acid and a diet rich in this molecule may contribute to atherosclerosis. E) It is a saturated fatty acid, a diet rich in this molecule may contribute to atherosclerosis, and molecules of this type are usually liquid at room temperature. Answer: D Topic: Concept 5. 3 Skill: Knowledge/Comprehension [pic] Figure 5. 3 76) Which of the following statements is true regarding the molecule illustrated in Figure 5. 3? A) It is a saturated fatty acid. B) A diet rich in this molecule may contribute to atherosclerosis. C) Molecules of this type are usually liquid at room temperature. D) It is a saturated fatty acid and a diet rich in this molecule may contribute to atherosclerosis. E) It is a saturated fatty acid, a diet rich in this molecule may contribute to atherosclerosis, and molecules of this type are usually liquid at room temperature. Answer: C Topic: Concept 5. 3 Skill: Knowledge/Comprehension 77) The molecule shown in Figure 5. 3 is a A) polysaccharide. B) polypeptide. C) saturated fatty acid. D) triacylglycerol. E) unsaturated fatty acid. Answer: E Topic: Concept 5. 3 Skill: Knowledge/Comprehension [pic] Figure 5. 4 78) What is the structure shown in Figure 5. 4? A) pentose molecule B) fatty acid molecule C) steroid molecule D) oligosaccharide molecule E) phospholipid molecule Answer: C Topic: Concept 5. 3 Skill: Knowledge/Comprehension [pic] Figure 5. 5 79) Which of the following statements is/are true regarding the chemical reaction illustrated in Figure 5. ? A) It is a hydrolysis reaction. B) It results in a peptide bond. C) It joins two fatty acids together. D) It is a hydrolysis reaction and it results in a peptide bond. E) It is a hydrolysis reaction, it results in a peptide bond, and it joins two fatty acids together. Answer: B Topic: Concept 5. 4 Skill: Application/Analysis Refer to Figure 5. 6 to answer the following questions. [pi c] Figure 5. 6 80) At which bond would water need to be added to achieve hydrolysis of the peptide, back to its component amino acid? A) A B) B C) C D) D E) E Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 1) Which bond is a peptide bond? A) A B) B C) C D) D E) E Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 82) Which bond is closest to the amino terminus of the molecule? A) A B) B C) C D) D E) E Answer: A Topic: Concept 5. 4 Skill: Knowledge/Comprehension [pic] Figure 5. 7 83) The structure depicted in Figure 5. 7 shows the A) 1-4 linkage of the ? glucose monomers of starch. B) 1-4 linkage of the ? glucose monomers of cellulose. C) double-helical structure of a DNA molecule. D) ? helix secondary structure of a polypeptide. E) ? pleated sheet secondary structure of a polypeptide. Answer: D Topic: Concept 5. 4 Skill: Knowledge/Comprehension The following questions are based on the 15 molecules illustrated in Figure 5. 8. Each molecule may be used once, more than once, or not at all. [pic] Figure 5. 8 84) Which molecule has both hydrophilic and hydrophobic properties and would be found in plasma membranes? A) 1 B) 5 C) 6 D) 12 E) 14 Answer: B Topic: Concept 5. 2 Skill: Knowledge/Comprehension 85) Which of the following combinations could be linked together to form a nucleotide? A) 1, 2, and 11 B) 3, 7, and 8 C) 5, 9, and 10 D) 11, 12, and 13 E) 12, 14, and 15 Answer: D Topic: Concept 5. 5 Skill: Knowledge/Comprehension 86) Which of the following molecules contain(s) an aldehyde type of carbonyl functional group? A) 1 B) 4 C) 8 D) 10 E) 1 and 4 Answer: E Topic: Concept 5. 2 Skill: Knowledge/Comprehension 87) Which molecule is glycerol? A) 1 B) 6 C) 10 D) 14 E) 15 Answer: C Topic: Concept 5. 2 Skill: Knowledge/Comprehension 88) Which molecule is a saturated fatty acid? A) 1 B) 5 C) 6 D) 8 E) 9 Answer: E Topic: Concept 5. 3 Skill: Knowledge/Comprehension 89) Which of the following molecules is a purine type of nitrogenous base? A) 2 B) 3 C) 5 D) 12 E) 13 Answer: E Topic: Concept 5. 5 Skill: Knowledge/Comprehension 90) Which of the following molecules act as building blocks (monomers) of polypeptides? A) 1, 4, and 6 B) 2, 7, and 8 C) 7, 8, and 13 D) 11, 12, and 13 E) 12, 13, and 15 Answer: B Topic: Concept 5. 4 Skill: Knowledge/Comprehension 91) Which of the following molecules is an amino acid with a hydrophobic R group or side chain? A) 3 B) 7 C) 8 D) 12 E) 13 Answer: B Topic: Concept 5. 4 Skill: Knowledge/Comprehension 92) Which of the following molecules could be joined together by a peptide bond as a result of a dehydration reaction? A) 2 and 3 B) 3 and 7 C) 7 and 8 D) 8 and 9 E) 12 and 13 Answer: C Topic: Concept 5. 4 Skill: Knowledge/Comprehension 93) A fat (or triacylglycerol) would be formed as a result of a dehydration reaction between A) one molecule of 9 and three molecules of 10. B) three molecules of 9 and one molecule of 10. C) one molecule of 5 and three molecules of 9. D) three molecules of 5 and one molecule of 9. E) one molecule of 5 and three molecules of 10. Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 94) Which of the following molecules could be joined together by a phosphodiester type of covalent bond? A) 3 and 4 B) 3 and 8 C) 6 and 15 D) 11 and 12 E) 11 and 13 Answer: D Topic: Concept 5. 3 Skill: Knowledge/Comprehension 95) Which of the following molecules is the pentose sugar found in RNA? A) 1 B) 4 C) 6 D) 12 E) 13 Answer: D Topic: Concept 5. 5 Skill: Knowledge/Comprehension 96) Which of the following molecules contains a glycosidic linkage type of covalent bond? A) 4 B) 6 C) 12 D) 13 E) 15 Answer: E Topic: Concept 5. 2 Skill: Knowledge/Comprehension 97) Which of the following molecules has a functional group that frequently forms covalent bonds that maintain the tertiary structure of a protein? A) 2 B) 3 C) 7 D) 8 E) 9 Answer: A Topic: Concept 5. 4 Skill: Knowledge/Comprehension 98) Which of the following molecules consists of a hydrophilic head region and a hydrophobic tail region? A) 2 B) 5 C) 7 D) 9 E) 11 Answer: B Topic: Concept 5. 3 Skill: Knowledge/Comprehension 99) Which of the following statements is false? A) Molecules 1 and 4 could be joined together by a glycosidic linkage to form a disaccharide. B) Molecules 9 and 10 could be joined together by ester bonds to form a triacylglycerol. C) Molecules 2 and 7 could be joined together to form a short peptide. D) Molecules 2, 7, and 8 could be joined together to form a short peptide. E) Molecules 14 and 15 could be joined together to form a polypeptide. Answer: E Topic: Concepts 5. 2-5. 4 Skill: Knowledge/Comprehension Scenario Questions Use the following information to answer the questions below. Approximately 32 different monomeric carbohydrate subunits are found in various natural polysaccharides. Proteins are composed of 20 different amino acids. DNA and RNA are each synthesized from four nucleotides. 100) Among these biological polymers, which has the least structural variety? A) polysaccharides B) proteins C) DNA D) RNA Answer: C Topic: Concepts 5. 2-5. 5 Skill: Synthesis/Evaluation 101) Which class of biological polymer has the greatest functional variety? A) polysaccharides B) proteins C) DNA D) RNA Answer: B Topic: Concepts 5. 2-5. 5 Skill: Synthesis/Evaluation 102) Professor Jamey Marth at the University of California, Santa Barbara, identified 70 molecules that are used to build cellular macromolecules and structures. These include at least 34 saccharides, 8 nucleosides, and 20 amino acids. In theory, then, which class of biological polymer has the greatest information-coding capacity? A) polysaccharides B) proteins C) DNA D) RNA Answer: A Topic: Concepts 5. 2-5. 5 Skill: Synthesis/Evaluation End-of-Chapter Questions The following questions are from the end-of-chapter â€Å"Test Your Understanding† section in Chapter 5 of the textbook. 103) Which of the following categories includes all others in the list? A) monosaccharide B) disaccharide C) starch D) carbohydrate E) polysaccharide Answer: D Topic: End-of-Chapter Questions Skill: Knowledge/Comprehension 104) The enzyme amylase can break glycosidic linkages between glucose monomers only if the monomers are in the ? form. Which of the following could amylase break down? A) glycogen, starch, and amylopectin B) glycogen and cellulose C) cellulose and chitin D) starch and chitin E) starch, amylopectin, and cellulose Answer: A Topic: End-of-Chapter Questions Skill: Knowledge/Comprehension 105) Which of the following statements concerning unsaturated fats is true? A) They are more common in animals than in plants. B) They have double bonds in the carbon chains of their fatty acids. C) They generally solidify at room temperature. D) They contain more hydrogen than do saturated fats having the same number of carbon atoms. E) They have fewer fatty acid molecules per fat molecule. Answer: B Topic: End-of-Chapter Questions Skill: Knowledge/Comprehension 106) The structural level of a protein least affected by a disruption in hydrogen bonding is the A) primary level. B) secondary level. C) tertiary level. D) quaternary level. E) All structural levels are equally affected. Answer: A Topic: End-of-Chapter Questions Skill: Knowledge/Comprehension 107) Enzymes that break down DNA catalyze the hydrolysis of the covalent bonds that join nucleotides together. What would happen to DNA molecules treated with these enzymes? A) The two strands of the double helix would separate. B) The phosphodiester linkages of the polynucleotide backbone would be broken. C) The purines would be separated from the deoxyribose sugars. D) The pyrimidines would be separated from the deoxyribose sugars. E) All bases would be separated from the deoxyribose sugars. Answer: B Topic: End-of-Chapter Questions Skill: Knowledge/Comprehension 108) The molecular formula for glucose is C6H12O6. What would be the molecular formula for a polymer made by linking ten glucose molecules together by dehydration reactions? A) C60H120O60 B) C6H12O6 C) C60H102O51 D) C60H100O50 E) C60H111O51 Answer: C Topic: End-of-Chapter Questions Skill: Application/Analysis 109) Which of the following pairs of base sequences could form a short stretch of a normal double helix of DNA? A) 5-purine-pyrimidine-purine-pyrimidine-3 with 3-purine-pyrimidine-purine-pyrimidine-5 B) 5-AGCT-3 with 5-TCGA-3 C) 5-GCGC-3 with 5-TATA-3 D) 5-ATGC-3 with 5-GCAT-3 E) All of these pairs are correct. Answer: D Topic: End-of-Chapter Questions Skill: Application/Analysis If you need any writing assistance, please contact us! Ascendnaamba.org, best MBA essay writing service, provides all kinds of academic help.

The Hypocrisy of Washington essays

The Hypocrisy of Washington essays When looking at the men who founded this country it is easy to lift them onto a pedestal and perceive them as perfect. The time itself is looked at as purely American; a time when American ideals were lived for the first time, when the ideals were lived perfectly and perhaps lived for the last time. Thomas Jefferson. Benjamin Franklin. Alexander Hamilton. John Adams. George Washington. Those names seem to be synonymous with America, with liberty, and with everything American culture stands for. Thus, seeing America as perfect, as something like the light in a world full of darkness, it is no wonder that Americans see these men as perfection embodied in men. Looking more closely it is found that there were faults in these men. Franklin was an arrogant, self-righteous, and obnoxious man. Hamilton and Adams were the same pigheaded. Yet, despite the fact that faults can be seen in these men, the higher caste founder, George Washington, is still seen as faultless. He is see n as the person who, seemingly by his mere will alone, made this country; molded thirteen colonies into what is now the most powerful country in the world. It is odd to think that he could have been at fault in some arena of his life. It is strange and slightly daunting to actually search his life for that fault. It is relieving and refreshing to have found one that, however slight it may have been, still reverberates in the modern time and culture. In order to understand George Washington and his main fault his time period must be thoroughly examined. George Washington was born February 22, 1732. Little is actually known about his childhood aside from menial details and facts. His father, Augustine Washington, after enlarging his third generation Virginian land holdings died in 1743. Thus, from the age of eleven Washington was raised by his mother, Mary. He learned to read and write at a young age either by tutors or at the local school...

The Development and Institutionalization of Slave Trade Essay Example

The Development and Institutionalization of Slave Trade Essay Example The Development and Institutionalization of Slave Trade Essay The Development and Institutionalization of Slave Trade Essay The Development and Institutionalization of Slave Trade BY vwoods 1987 Slavery, the condition of one human being owned by another (Slavery), has gone through many stages in its development and its reception around the world. As part of the Roman Empire in the 1st century BCE, slaves were a large part of civilized society as entertainers in the gladiator arena. These slaves would have been forced to compete, but with their victories and their deaths they would gain respect and some even their freedom. In Africa before the 16th century, slavery and systems of ervitude existed throughout the continent. African slaves during this time were often captives of war or indentured servants; however they were not treated with disrespect. Instead it was common practice for such slaves to be fully integrated into the village or tribe to which their owners belonged. Slaves would live side by side with their owners and could eventually become each others peers. It wasnt until the colonization of the New World and the spread of tobacco cultivation (Foner 101), began that the bond of slavery became less about the slave and more about cheap nd lifelong labor. As Eric Foner states in Give Me Liberty! An American History, no European nation embarked on the colonization of the New World with the intention of relying on African Slaves for the bulk of its labor force (101). Unfortunately, as the New World began to develop and expand its agriculture base, namely tobacco, that the demand for workers increased. European settlers originally had no plan to meet the labor request. Their first resort was to force Indian labor (Morgan 52). This plan began to unravel quickly however, since the Indians were easily susceptible to oreign diseases and began to die off before profits could be made (Morgan 53). It became clear that the Indian population would not support the labor force needed, and so the Europeans began looking elsewhere. Having considered other options, Europeans set their sights on Africa (Morgan 53). The nations of West Africa had had long standing relationships with the different European nations. In the early years of what would become the Trans-Atlantic Slave Trade, Spain and Portugal were the first nations to export slaves from Africa in great numbers. Records show that from the years 1500 to 1 550 over 64, 000 slaves were exported by these two countries alone (Number of Captives). These same records conclude that until the 1640s, Spain and Portugal were the only two countries with significant numbers in the slave trade. In 1619, the first Africans, twenty in all, arrived in Virginia (Foner 105), and with their arrival, the flood gates opened. It was at this time that other nations, namely Great Britain and the Netherlands, became more involved in the slave trade. The British and the Dutch began importing laves to the New World to meet the needs of the colonies. The British colonies of Virginia and Maryland, as well as the Dutch colony in New York, made up the Chesapeake area, with each having its own large tobacco industries that needed to be fueled by slave labor. By the turn of the century, the British and the Dutch had imported nearly 640,000 slaves to the colonies. With the importation of large number 0T slaves came more ana more laws tnat trlea to ratlonallze slavery as well to create a never ending supply of new slaves. Laws were passes regarding the birth of slave children as well as interracial children, with nearly all laws stating that if the mother was a slave that the child was a slave also, and became property of the slave owner. These laws consequently made sexual abuse of slave women profitable for slave holders (Foner 106). In such a short time Virginia had changed from a society with slaves, in which slavery was one system of labor among others, to a slave society, where slavery stood at the center of the economic process (Foner 108). Across the Atlantic, as stated efore, slavery was practiced throughout much of Africa among the various tribes and villages. However, with the increasing demand for slaves, coastal tribes would raid the inland tribes and capture their fellow Africans and sell them to the Europeans for small valuable trinkets. These newly captures slaves couldnt possibly have known what their futures held for them in the New World, if they made it there. Within the borders of the New World slaves tried to escape whenever possible, but rarely succeeded in such a new and strange world. Slaves newly imported were ubject to laws and customs that they didnt understand, and since many of them came from different villages few could communicate with each other (Marques). Slave rebellion was kept under control by the fierce and open violence aimed at those who stepped out of line. Fear for ones life suddenly became more important than freedom for many of the newly enslaved. As the years progressed the slave trade would see fluctuations in the number of slaves exported from Africa and imported to various countries as well as into the colonies, and then the United States of America. Political tensions, including the Revolutionary War, contributed to decline in slave importation but it wasnt until the 1831s that the slave trade essentially ended, at least for the United States. As History is bound to repeat itself, in recent times, there are numerous occasions were slavery has peaked and then declined. Fortunately these recent incidences, have never reached such catastrophic and saddening numbers as the Tran-Atlantic Slave Trade had. Foner, Eric. Give Me Liberty!. An American History. 3rd ed. Vol. 1. New York: W. W. Norton, 2011. Print. Marques, Leonardo. Slave Trading In a New World. Journal of the Early Republic 32. 2 Academic search complete. web. 4 oct. 2012 Morgan, Philip D. Origins of American Slavery. OAH Magazine of History 19. 4 (2005): 51-56. Academic Search Complete. Web. 4 Oct. 2012 Number of Captives Embarked and Disembarked Per Year. The Trans-Atlantic Slave Trade Database. Emory University, 2009. Web. 4 Oct. 2012. Slavery. Encyclop? ¦dia Britannica. Encyclop? ¦dia Britannica Online. Encyclop? ¦dia Britannica Inc. , 2012. Web. 10 Oct. 2012

Globalization of production & the spread of counterfeit products; A Essay

Globalization of production & the spread of counterfeit products; A Comparative analysis of the International Law on counterfeit & Piracy - Essay Example The region has since developed from a mere supplier of raw materials to an emerging production economy brought about by its export capability (Haggett, 2002). On a sad note, however, Asia is now emerging to be the single largest producing region for counterfeits and pirated goods. The Internet lent itself handy as a new platform for boosting sales, with considerable assistance from criminal networks and organised crime. The glitter of enormous profit has encouraged more counterfeiters and pirates to join the bandwagon. Moreover, penalties were believed to be relatively light even when the counterfeiting and piracy operations are detected and the perpetrators are brought to justice (OECD, 2007). This paper discusses the mechanisms which promote the growth of counterfeiting and piracy operations; the existing initiatives and laws in the war against counterfeit and pirated goods with special emphasis on the Southeast Asian region in the light of its new sobriquet as the top manufacturing region for counterfeit and pirated products; and the weaknesses or loopholes of these laws, if any. An attempt was also made to perform a comparative analysis of the policy failures, if any, and successes of coordinated efforts to fight counterfeiting and piracy. Finally, recommendations will be forwarded in the light of the inputs from the data analysed. The OECD (1998) defined counterfeiting as â€Å"an infringement of the legal rights of an owner of intellectual property† (p. 5). This is the broadest essence of the term counterfeiting. To be more specific in this discussion, however, the paper utilised the definitions of counterfeiting and piracy from the context of the TRIPs Agreement2, as counterfeit trademark goods and pirated copyright goods, respectively: Counterfeit trademark goods shall mean any goods, including packaging, bearing without authorisation a trademark which is

Weather Phenomenons vs. Crop Prices Essay Example | Topics and Well Written Essays - 1750 words

Weather Phenomenons vs. Crop Prices - Essay Example These elements are composed of what is known as weather phenomena such a drought, hurricane, wind, heavy rainfall, and snow. Drought, for example, tends to destroy crops, thereby decreasing its supply in the market and increasing prices. Other weather phenomena also affect the prices of the crops commodities in different ways, as will be discussed in the paper. Weather Phenomenon vs. Crop Prices Introduction In its literal meaning, weather refers to a state of the atmosphere, to the extent to which it is cold, hot, dry, wet, stormy, calm, cloudy, or clear. In general terms, it refers to the day-to-day temperature and rainfall activities. According to Arnold (2010), weather is associated with a number of phenomena that influence greatly the prices of crops. The phenomena include droughts, prolonged heavy rainfalls (El-Nino), hurricanes, hailstorms, lightning, clouds, snow, and wind. The objective of this paper is to explore the current weather phenomena and their impact on crop prices . Drought Drought refers to a period of a dry spell when there is no rainfall. It is one of the major weather phenomena that affect the prices of crops. This is due to the fact that during a dry spell, crops usually dry up in the farms leading to poor harvest. This in turn, will lead to shortage of crops in the market (Bolling, 2000). When such a shortage occurs, the demand of the crops in the market will likely outweigh their supply. This will result in an increase in the price of these crops, as many buyers will be competing to buy them. Such a situation is being witnessed in the Midwest of the USA, where persistent drought has seen the prices of corn increase tremendously over the past few weeks (Sosnowski, 2012). Johnson (2012) notes that 10-months corn futures and soybeans’ prices hitting unprecedentedly high since 2008 are due to the speculation that the spreading drought currently witnessed in the Midwest of the US will cut the US’s supplies of these crops, as i t is the world’s largest producer of the crops. This was after the meteorological department predicted that the Midwest would experience unusually hot and dry spell in the next 10 days, as occasional light showers would be too little for more than brief crop improvements. Gim Gerlach was reported as saying that the crops are shrinking daily, while prices are shooting up for less available supply of crops for domestic use and export (Johnson, 2012). Statistically, corn futures for December supply jumped 4.4% to close at $7.725 per bushel on the Chicago Board of Trade. The trade market also had hit $7.78 high early on. This general increase in corn and soybeans due to the drought would also probably lead to inflation. Demand and supply curve: Price S2 S1 P2 D2 P1 D1 D Q2 Q1 Quantity Before the drought hit Midwest, production of corn stood at Q1 at S1 supply curve while price charged was P1and demand D1. However, after the drought hit the country, the supply curve shifted to S2 and the quantity supplied moved to Q2, thereby increasing prices from P1 to P2. The price increase in this case was caused by a fall in supply of corn, as people scrambled for the few remains, shifting the demand to D2. Adequate Rainfall Theoretically, farmers perceive rainy seasons as a period of bumper harvest. This is because the proper frequency of rainfalls leads to a good yield (Libecap & Steckel, 2010). The result would be that there would be enough supply of the crop in question to feed the nation and to export. Similarly, the forces of demand and supply would help determine the prices of the crops. Since supply would be high, this means

The Empires of the Past Essay Example for Free

The Empires of the Past Essay The modern world is shaped by different cultures and beliefs that are rooted from the past. Moreover, most of the strategies and techniques used in architecture, policy making and trade are also handed down from former civilizations. The three most prominent empires that highly influenced modern day culture are the Roman, Gupta and Han empires. These empires rise and fall almost simultaneously while leaving behind a great legacy. Acquisition The Roman Empire (27 B. C. – 476 A. D. ) was acquired after years of civil wars. These wars resulted from the fall of the Roman Republic. It started when the Roman Senate designated Octavious as Agustus. Augustus succeeded in capturing the hearts of the populace. In the process, he successfully managed to end the civil wars across the Roman territory and unite them under one rule. The Gupta empire (320-550 A. D. ) proliferated in the Northern India. It started when different states become reunited under the Gupta’s influence. Furthermore, the empire extends through extensive military conquest to the surrounding states. Han Dynasty started during about 206 B. C until 220 A. D. Economic expansion had been the foremost strategy that expands Han’s territory. Although, they also established military supremacy. Like the Roman and Gupta Empire, the Han dynasty also worked towards to create a united China. Rule The Roman Empire tried to tolerate most of the religion in their territory; however, the government is somehow against Christianity. During the empire’s reign, the people experienced a wide divergence of cultures and beliefs. Arts, mathematics and literature where central to education. The Gupta Empire also invests on education of literature, mathematics and astronomy. They also tolerate different beliefs and tradition especially the prevalence of Hinduism and Buddhism. Han dynasty, while investing in trade and education, promotes philosophical structures of Taoism and Confucianism. They incorporate these traditions into their political and civil systems. All of the empires are believed to encompass the ‘golden age’ in each area. Roman Empire prospered during the Pax Romana. The Gupta Empire had been well-known during the time when trade was abundant in South Asia. Han dynasty reached new regions as it expand its territory and established the ‘Silk Road’ where most merchants enter and live China. Collapse The reign of the different empires started with the goal of reuniting or uniting the different states within and beyond their actual territories. Nonetheless, the expansion later led to lack of sufficient control. Although, bureaucracy was established in all empires, due to several differences, the populace revolts against the government. In the case of the Roman Empire, the fall of the empire was commonly attributed to the rise of Christianity and the economic problems during those years. The Gupta Empire was said to have declined after the invasion of the Huns which caused their trade to falter and raised tension among different regions. Han dynasty was believed to collapse due to corruptions among the officials of the government. Small farmers were mostly the victim of such corruption. Civil wars broke since the people were against the government. Conclusion The impact and legacy of the three different empires discussed are far-reaching. Christianity is still in existence and the prominence of Roman Culture is still significant as of today. Their tradition and heritage, as well as their rhetoric and arts are still studied in various schools and university. Architectures and political structure are highly scrutinized and admired. The regions acquired by the Gupta dynasty resemble most of modern day’s India. The culture and religion that exist before are still in existence. Han dynasty focuses on trade and commerce. These trade expertise and traditions are still adapted by Chinese after communism failed. Modern China has intermixed Taoism and Confucianism as a religion and a way of life. Works Cited Stearns, P. N. Documents in World History. 4th edition. Longman, 2005. Brummett, P. J. , Edgar, R. R. , Hackett, N. J. , Jewsbury, G. F. and Molony, B. S. Civilizations Past and Present Volume 1 to 1650. 11th edition. Longman, 2005.

Family Practice :: Residency Admissions Essays

Family Practice    I was born in Tamil Nadu, a southeastern state in India. I did my schooling in Madras, a large metropolitan city in India. I was interested in science courses especially in Zoology. This interest, combined with my desire to serve the humanity, I set my career goal to become a physician. I then joined Stanley Medical College, which is one of the finest in medical schools in India.    After graduation, I worked for a year with an internist, where I dealt with medical emergencies and did inpatient management. I decided to pursue my postgraduate studies to further broaden my knowledge in July 1993. I chose Obstetrics and Gynecology as my specialty and received my diploma in Ob Gyn in June '95. I participated in the continuing medical education programs and also did bed side teaching for the medical students and received excellent feedback from my preceptors. Following my post graduation, I worked for two years with hands on experience with a variety of Obstetrics & Gynecology, Pediatrics, Medical and Surgical cases and attended a free weekly clinic providing primary care to the rural people.    I moved to California in July 1997. I have successfully completed my step one and step two exams in June and March 1998 respectively. In order to gain some insight into the medical practices in the United States, I am volunteering as a research assistant at the Veteran's Affairs Hospital in Palo Alto, an affiliate of the Stanford University School of Pulmonary and Critical Care Medicine, where I am involved with the evaluation of ' The Diagnosis and Staging of Lung Cancer using Positron Emission Tomography', the results of this work will be published in a few months. At the Veteran's Hospital, I also attend the Pulmonary Grand Rounds, Pulmonary Clinics and lectures with the Stanford Residents in the ICU and the GMC. I also volunteer in other primary care facilities. Research and work has given me the opportunity to interact with people and to acclimatize to the US culture.    My personal interest includes Indian classical music and travel. I play the Veena, a string instrument used widely in the Indian Classical Music; which has amazed the western artists for its wide range of musical tones.    Family Practice deals with all the aspects of medicine and focuses on preventive care.

Financial Analysis of Bank of America

Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 | Financial Analysis of Bank of America Financial Statement Analysis of Bank of America Group 1 Chen, Yelin Dong, Xiaoxu Gransbach, Jennifer Shuai, Wang Weiss, Charles 1Financial Statements of Bank of America1 1. 1Balance sheet1 1. 2Income statement2 1. 3Regulatory capital ratios2 1. 4Investment portfolio2 1. 5Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI3 1. 5. 1Bank of America3 1. 5. 2JP Morgan Chase3 1. 5. 3Citi Group3 1. 6Netting Financial Instruments3 1. 6. 1Bank of America4 1. 6. 2Comparable banks4 1. 6. 3Analysis of the impact4 2Fair Value Accounting for Financial Instruments4 2. Fair value accounting4 Table 6 Summary of the Fair Value Income5 2. 2Opinions about fair value accounting5 3Interest Rate Risk and Net Interest Earnings6 3. 1Net interest margin6 3. 2Interest rate risk7 4Credit Risk and Losses7 4. 1Main loss reserve adequacy ratios8 4. 2Policy to designate past due loans as non-performing8 4. 3Adequacy of the bank’s allowance for loan losses8 4. 4Disclosure policies relating to loans8 5Appendix9 * Part 1 Financial Statements of Bank of America . 1. 1 Balance sheetBank of America’s balance sheet has total assets of $2,129,046 million in 2011, which is less than last year’s $2,264,909 million, a fairly significant decline. There are a few primary assets on the balance sheet. The largest asset is loans and leases which makes up 41. 92% of the total assets. The next largest asset was Available-For-Sale securities making up 12. 97% of total assets. Total liabilities on the balance sheet were $1,898,945 million, with the primary liability being deposits in U. S. offices both interest bearing and noninterest bearing, at 50. 4% of total liabilities. The next largest liability was long-term debt at 19. % of total liabilities. In millions| 2011| % of total assets| 2010| % of total assets| % chg from 2010-2011| Total asset| 2,029,046 | 100. 00%| 2,264,909 | 100. 00%| -10. 41%| Loans and leases| 892,417 | 43. 98%| 898,555 | 39. 67%| -0. 68%| Available-for-sale| 276,151 | 13. 61%| 337,627 | 14. 91%| -18. 21%| Total liabilities| 1,898,945 | 93. 59%| 2,036,661 | 89. 92%| -6. 76%| Total deposits| 1,033,041 | 50. 91%| 1,010,430 | 44. 61%| 2. 24%| Deposits in U. S. offices| 957,042 | 47. 17%| 930,913 | 41. 10%| 2. 81%| Long-term debt| 372,265 | 18. 35%| 448,431 | 19. 80%| -16. 98%| Leverage ratio| 14. 0 | ? | 8. 92 | ? | 63. 58%| Table 1 Selected Financial Data from Balance Sheet of Bank of America Chase and Citi are fairly similar in size and distribution of their balance sheets. Chase and Citi have total assets of 2,265,792 and 1,873,878( ) respectively, both with slightly lower loans as a percentage of total assets at slightly over 30%, while AFS securities are around 16% of total assets for each. Liabilities are also very similar, with Chase having total liabilities of $2,082,219 million and Citi $1,694,305 million. The primary line items are also very similar once again with Chase’s total deposits 54. 6% and long-term debt 22. 77% of total lia bilities, while Citi has deposits 51. 11% and long-term debt of 19. 09%. According to the deposits in U. S. offices, BOA focus more in U. S market and Citi focus more on market outside U. S. In millions| Bank of America| % of total assets| JP Morgan Chase| % of total assets| Citi Group| % of total assets| Total asset| 2,129,046 | 100. 00%| 2,265,792 | 100. 00%| 1,873,878 | 100. 00%| Loans and leases| 892,417 | 41. 92%| 696,111 | 30. 72%| 617,127 | 32. 93%| Available-for-sale| 276,151 | 12. 97%| 364,793 | 16. 10%| 293,413 | 15. 66%| ? | ? | ? | ? | ? | ? | ? |In millions| Bank of America| % of total liabilities| JP Morgan Chase| % of total liabilities| Citi Group| % of total liabilities| Total liabilities| 1,898,945 | 100. 00%| 2,082,219 | 100. 00%| 1,694,305 | 100. 00%| Total deposits| 1,033,041 | 54. 40%| 1,127,806 | 54. 16%| 865,936 | 51. 11%| Long-term debt| 372,265 | 19. 60%| 256,775 | 22. 77%| 3,235,050 | 190. 94%| Leverage ratio| 8. 25 | ? | 11. 34 | ? | 9. 44 | ? | | | | | | | | In millions| Bank of America| % of total deposits| JP Morgan Chase| % of total deposits| Citi Group| % of total deposits| Deposits in U. S. offices| 957,042 | 92. 64%| 851,534 | 75. 0%| 343,288 | 39. 64%| Table 2 Selected Financial Data from Balance Sheets of Three Banks in 2011 In the event of a bank run, Bank of America will be in trouble due to its high leverage, similar to many banks. Bank of America has deposits of $1,033,041 million, among which liquid assets only have $314,425 million, including cash and cash equivalents of $120,102 million, time deposits and other short-term investments of $26,004 million and trading assets of $169,319 million. Even with the ability to liquidate those non-cash assets, it will still only be able to honor slightly more than 30% of its depositors.Income statement The primary line item on Bank of America’s income statement is net income of $1,446 million, which increased compared to a net loss of 2,238 in 2010. Interest income was $66 ,236 million, down from $75,497 million in 2010. Total interest expense was $21,620 million, which makes the net interest income become $44,616 million, down 13. 4% from the previous year. Lastly, total noninterest income was $48,838 million, decreased by 16. 8% from 2010. This is partly due to the big loss of mortgage banking income, decreasing from $2,734 million in 2010 to $(8,830) million in 2011.Chase and Citi had similar trends, both slightly increasing their bottom line while having net interest income decrease slightly. Regulatory capital ratios 2011| Bank of America| JP Morgan Chase| Citi Group| To be well capitalized| Leverage ratio| 7. 53%| 6. 80%| 7. 19%| 5%| Tier 1 risk-based capital ratio| 12. 40%| 12. 30%| 13. 55%| 6%| Total risk-based| 16. 75%| 15. 40%| 16. 99%| 10%| Table 3 Regulatory Capital Ratios of Three Banks in 2011 In 2011, Bank of America was considered well capitalized for all three regulatory ratios–Tier 1 capital, risk-based capital and leverage.Ba nk of America slightly increased all of its ratios from 2010 to 2011. Its tier 1 capital ratio was 12. 4% while 6% is considered well capitalized, its risk based capital ratio was 16. 75% while 10% is considered well capitalized, and its leverage ratio was 7. 53% while 5% is considered well capitalized. ( Table 4, Table 3) Chase and Citi had very similar ratios to Bank of America. Chase was slightly below Bank of America and Citi for all three ratios but still well above the floor to be well capitalized.Citi had a slightly lower leverage ratio and slightly higher tier 1 capital and risk based capital ratios. Regulatory ratios are fairly important; however there are some issues with them. The ratios are backwards looking, so there could be a large amount of change since in the numbers. There are also lots of adjustments made by the company to the different numbers that make up the ratio that might not even make sense such as ignoring AFS losses. The current risk weighting is also ve ry simplistic currently and might not reflect the actual risk of the assets.One important thing to note is that the newly released Basel III norms by Basel Committee on Banking Supervision (BCBS) would require a higher regulatory capital ratio on banks. It is recommended that Basel III be implemented by January 1, 2015. According to the new rules, the mandatory Tier 1 common capital ratio would be 7%. Banks should maintain conservation buffer of 2. 5% and reserves amounting to 8. 5% of assets. Therefore, in order for Bank of America to meet the future requirements and be well capitalized in face of potential financial meltdowns, it should hold more and better quality capital, carry more liquid ssets, and limit leverage. ( , ) Investment portfolio The net unrealized gains on HTM securities of $177 million = $181 million + ($4) million that have not been recognized in OCI as of the end of 2011 are attributable to HTM securities that have not been deemed other than temporarily (OTT) i mpaired, so that amortized cost is the carrying value. Amortized cost is a highly limited valuation basis for risky securities. There was very little mention of reclassification in Bank of America’s 10-K. There was a mention of a reclassification of $26. billion primarily due to noninterest earning equity securities being moved from trading account assets to other assets, but no mention of anything else. Impact of the FSP FAS 115-2 and FAS 124-2 on OTTI Bank of America According to FSP FAS 115-2 and FAS 124-2, banks are allowed to report non-credit related OTTI in Other Comprehensive Income (OCI). Only credit-related OTTI is recognized in net income. The Total OTTI losses (unrealized and realized) for 2011 is $360 million, and portion of other-than-temporary impairment losses recognized in other comprehensive income is about $61 millions.The net amount is $299 million which is recognized in earnings on AFS debt securities in 2011, compared to $970 million on AFS debt and mark etable equity securities in 2010. When we compute the regulatory Tier One Capital, the unrealized losses on AFS investments are (added back) excluded. Thus, the $61 million is added back to calculate the Tier One Capital. With adding back, Tier 1 risk-based capital ratio is 12. 40% as shown on 2011 Y9C. In absence of adding back, the ratio is (159,231,999-61,000)/ 1,284,466,933=12. 39%. JP Morgan Chase For JP Morgan Chase, the10K shows Total other-than-temporary impairment losses for are 27, 94, nd 946 million for year 2011, 2010 and 2009 respectively. ( ) However, it doesn’t divide these amounts into credit-related portion and non-credit related portion. Based on the other two banks examples, we can infer that the Tier One Capital for JP Morgan Chase will go up after adoption. Citi Group Citigroup also adopted the same rules above in first quarter of 2009. As a result of the FSP, Company’s Consolidated Statement of Income reflects the full impairment on debt securiti es that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis.As a result of the adoption of the FSP, Citigroup’s income in the first quarter of 2009 was higher by $631 million on a pretax basis ($391 million on an after-tax basis) and AOCI was decreased by a corresponding amount. However, 2011 10K does not gives details about regarding the credit loss component of OTTI in 2011. When we compute the regulatory Tier One Capital for Citigroup, the unrealized losses from non-credit loss component on debt securities are (added back) excluded, which leads to an increase in Tier One Capital.Netting Financial Instruments | Â  | Bank of America| JP Morgan Chase| Citi Group| IFRS(Before netting)| Total assets| 2,130,796| 3,976,317| 2,749,470| | Total debt| 1,900,695| 3,792,742| 2,564,671| | Total equity| 230,101| 183,575| 184,799| | Leverage ratio| 8. 26| 20. 66| 13. 88| GAAP(After netting)| Total assets| 2,129,046| 2,265,792| 1,873,878| | Total debt| 1,898,945| 2,082,219| 1,694,305| | Total equity| 230,101| 183,573| 179,573| | Leverage ratio| 8. 25| 11. 34| 9. 44| Table 4 Netting Adjustments for Three Banks in 2011 Bank of AmericaAccording to Note 4—Derivatives, Bank of America had legally enforceable master netting agreement that would reduce both derivative assets and derivative liabilities by the same amount of 1,749. 9 million, respectively. Moreover, cash collateral was applied to net off derivative assets by 58. 9 million and derivative liabilities by 51. 9 million, respectively. However, the reduction caused by cash collateral wouldn’t affect total assets and total liabilities. If Band of America were to adopt IFRS, it would report higher gross derivative assets and liabilities by an increase of 1,749. million. However, the adjustment (1,749. 9 million) was insignificant compared to Bank of America’s total asset base (2,129,046 million, about 0. 08%). Th erefore, the leverage ratio would only increase slightly due to this change, from 8. 25 under GAAP to 8. 26 under IFRS. Comparable banks J. P. Morgan Chase’s gross derivative assets were offset by 1,710,525 million netting adjustments and gross derivative liabilities by 1,710,523. Such adjustments almost made up of 75% of Chase’s total asset base which is 2,265,792 million.Therefore, if to adopt IFRS, Chase would record a much higher assets and liabilities up to 3,976,317 million and 3,792,742 million, respectively. Leverage ratio, accordingly, would rise from 11. 34 to 20. 66, with an almost doubled increase. Citi Group’s netting adjustments of 875,592 million against derivative assets made up 46. 7% of total assets, and 870,366 million against derivative liabilities made up 33. 9% of total liabilities. When adopting IFRS, Citi would report a higher assets and liabilities, with its leveraging ratio growing from 9. 44 to 13. 88 due to the significant amount of t he netting adjustments. Analysis of the impactFrom the above table, we can see that Bank of America was merely affected by the presentation of netting financial instruments, while the other two banks were greatly affected in terms of leverage ratio. The main reason to such a distinguished difference is that Bank of America had the smallest investment in derivative instruments, compared to Chase and Citi. The gross approach would definitely give a more comprehensive picture of banks’ derivative instruments; however, it would overstate risk to some extent. Market risk of the derivative positions can be better evaluated using the gross presentation which is more detailed.Firstly, net figures are by far more relevant metrics than the gross amounts. Naturally, this comes about from looking to the way that derivatives are traded under an enforceable master netting agreement. The master netting agreement allows for the aggregation of all trades and the replacement by a single net am ount. Secondly, another metric to measure derivative portfolios is volatility which is driven by the risk of open market positions and the potential changes in net asset values and not the size of gross derivatives amounts.Therefore, gross balance sheet amounts are not particularly useful indicators of how much net derivative asset values would have to change before solvency is affected. Finally, as the third most important metric when evaluating the risks, collateral together with cash settlement procedures results in a liquidity profile that is more aligned with net presentation. Collateral amounts further reduce the risks and have to be taken into consideration for reporting derivatives Fair Value Accounting for Financial InstrumentsFair value accounting From table 5 and the three computation tables in Appendix, we can see that under Full Fair Value method, Bank of America’s net income would grow from 1,446 million to 2,750 million, an increase of 90. 2%. Similarly, Citi w ould experience an increase of 128. 2% in net income from 11,067 million to 25,257 million. However, full fair value method had insignificant impact on Chase, with a total adjustment of 1,773 million compared to its pre-adjustment net income of 18,976 million.In millions| Bank of America| JP Morgan Chase| Citi Group| Adjustments for assets and liabilities at HC on balance sheet| 6,127 | 1,140 | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| -4,819 | 633 | 2,190 | Total adjustment| 1,308 | 1,773 | 14,190 | Net income as per financial statements| 1,446 | 18,976 | 11,215 | Full fair value income with information available| 2,754 | 20,749 | 25,405 | * Table 5 Summary of the Fair Value IncomeAnother thing to note is that BOA stands out as it had a significant unrealized loss of 4,819 million on AFS, while its comparable banks, Chase and Citi, had a positive gain of 633 million and 2,190 million, respectively. Based on our analysis, su ch difference was driven by the following factors. (1). According to its disclosure, Bank of America recognized $299 million of other-than-temporary impairment (OTTI) losses in earnings on AFS debt securities in 2011 compared to $970 million on AFS debt and marketable equity securities in 2010, which contributes greatly in such a large amount of unrealized loss on AFS.The recognition of OTTI losses on AFS debt and marketable equity securities is based on a variety of factors, including the length of time and extent to which the market value has been less than amortized cost, the financial condition of the issuer of the security including credit ratings and any specific events affecting the operations of the issuer, underlying assets that collateralize the debt security, other industry and macroeconomic conditions, and management’s intent and ability to hold the security to recovery. (2).According to its disclosure, Bank of America presents debt securities purchased for longer term investment purposes which are as part of asset and liability management (ALM) and other strategic activities, as available-for-sale (AFS) securities, and report these securities at fair value with net unrealized gains and losses included in accumulated OCI. In 2011, the fair value of net ALM contracts decreased $7. 9 billion to a gain of $4. 7 billion, compared to $12. 6 billion in 2010. The decrease was primarily attributable to changes in the value of U. S. dollar-denominated pay-fixed interest rate swaps of $9. billion, foreign exchange contracts of $1. 8 billion and foreign exchange basis swaps of $1. 4 billion. The decrease was partially offset by a gain from the changes in the value of U. S. dollar-denominated receive-fixed interest rate swaps of $6. 6 billion. Opinions about fair value accounting Fair Value Accounting has many advantages and disadvantages as listed below. FVA advantages include the following: FVA depicts a clearer picture of the company’s financi al situation, as it provides an accurate asset and liability valuation as the prices are reflected in the market price.Fair value accounting limits managers’ ability to manipulate the reported net income, as the gains and losses are reported in the period they occur, not when they are realized as the result of a transaction. For Level 1 & 2, the price for financial instruments, are available in a liquid market. While under amortized accounting method, firms can manage their income through the selective realization of cumulative unrealized gains and losses on positions, an activity referred to as gains trading.FVA provides investors with more accurate, timely, and comparable financial information versus other alternative accounting approaches, even during extreme market conditions. Gains & losses resulting from changes in fair value estimates indicate economic events that companies and investors may find worthy of additional disclosures. Under amortized accounting, income typi cally is persistent for as long as firms hold positions, but becomes transitory when positions mature or are disposed of and firms replace them with new positions at current market terms.Disadvantages of FVA include: The price for certain assets and liabilities may fluctuate often, resulting in higher volatility than other accounting methods. When the market is volatile, the price for financial instruments may change a lot, so companies may recognize gains/losses. This volatility of earnings would make it more difficult for users to predict future performance and make regulatory capital ratio vary dramatically across periods. A solution for this disadvantage is regulatory capital should be delinked from fair value and reported by using historic cost information.After the market stabilizes, the price may change back to the normal level. Not every asset or liability can be easily fair valued. For financial instruments in level 3, there is no fair value in the liquidity market. Manager s need model to estimate the value of financial instruments in level 3. Using fair value accounting may have adverse effect on a down market. Companies may sell some financial instruments whose value decreased because of the drop in the current market price. They may not realize the drop without the fair value accounting.The market may stabilize over time, and the price for the financial instruments will return to their normal level. Another issue with fair value accounting is that when the market for instruments freezes up and there’s no liquidity in the market, financial instruments would have to be valued by using mark-to-model which in many situations are not reliable and transparent to investors. A solution to this is that regulators provide more specific guidance on how to determine fair value for financial statements.Disclosure requirements would include disclosure of fair value of all financial instruments along with method adopted to determine fair values, any signif icant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value. In addition, fair value accounting has very significant feedback effects, especially during financial crisis.Fair value accounting would further contribute to the deterioration in the value of a company’s financial instruments or assets and make it more difficult for companies to recover from the crisis. Recommendation here is that in special situations, regulators would allow companies that face severe crisis to adopt other accounting methods temporarily and minimize the loss of these companies. In summary, fair value has both advantages and disadvantages under today’s economy. FVA provides better insight of the financial statements, in ddition to limiting the potential for manipulation. However, in my opinion, under today’s economy situation, it is hard to fully implement the fair value accounting. Every disadvantage has proposed solutions to resolve the issues identified. Overall, FVA is recommended for use. Interest Rate Risk and Net Interest Earnings Net interest margin The net interest yield on a FTE basis was 2. 48 percent for 2011 compared to 2. 78 percent for 2010. Net interest income on a FTE basis decreased $7. 1 billion in 2011 to $45. 6 billion. The decline was primarily due to: (1).There’s a noticeable decrease in the yield on consumer loans from 6. 04% in 2010 to 5. 37% in 2011, which reduces net interest income by about 4,244 million (633,507 million * 0. 57%). * Debt securities and residential mortgage mainly contributed to the decline. The yield rate for debt securities decreased from 3. 66% to 2. 85%, and the residential mortgage from 4. 78% to 4. 18%. (2). Noninterest income declined from the previous year due to lower mortgage banking income, reflecting$11. 6 billion in representations and warrant ies costs and decline of $3. billion income from trading account profits. Noninterest income being the major source of Bank of America's income drastically impacts the profitability of the company. (3). In 2011 Bank of America had a decreased investment security yields, including the acceleration of purchase premium amortization from an increase in modeled prepayment expectations, and increased hedge ineffectiveness. (4). Bank of America’s declining net interest margin was partially offset by ongoing reductions in its debt footprint and lower rates paid on deposits.The total U. S interest-bearing deposits had an average yield of 0. 36%, compared to 0. 55% in 2008. Such downward trend in net interest margin can be observed in other banks as well. The following table presents total interest-earning assets rate and total interest-bearing liabilities for all three banks over 2009 to 2011. As shown, all banks experienced a decline in interest-earning assets rate over three years: 1) BOA from 4. 31% in 2009 to 3. 65% in 2011, with an average decrease of 8% every year; 2) Chase from 4. 04% to 3. 1%, with an average decrease of 6. 8%; 3) Citi from 4. 78% to 4. 27%, with an average decrease of 5. 5%. The main reasons for the other two banks’ declining net interest margin were higher deposit balances with lower loan yields. | Bank of America| JP Morgan Chase| Citi Group| | 2011| 2010| 2009| 2011| 2010| 2009| 2011| 2010| 2009| Total interest-earning assets rate| 3. 65%| 4. 02%| 4. 31%| 3. 51%| 3. 83%| 4. 04%| 4. 27%| 4. 55%| 4. 78%| Total interest-bearing liabilities| 1. 39%| 1. 39%| 1. 77%| 0. 86%| 0. 84%| 1. 02%| 1. 63%| 1. 61%| 1. 3%| Table 6 Net Interest Margin of Three Banks Interest rate risk BOA’s net interest income decreased by $2,122 million in 2011 and $998 million in 2010 from a 1% downward parallel shift in interest rate. 1% downward change in interest rate results in a bigger decrease in net interest income in 2011 than in 2010. However , according Chase’s 10K, downward 100bps parallel shocks result in a Federal Funds target rate of zero and negative three- and six-month treasury rates. The earnings-at-risk results of such a low-probability scenario are not meaningful.For Citi, a 100 bps decrease in interest rates would imply negative rates for the yield curve, so not meaningful either. 1% downward shift| 2011| 2010| BOA| ($2,122)| ($998)| JP Morgan Chase| NM| NM| Citi Group| NM| NM| Table 7 The Impact of 1% downward shift on Net Interest Income BOA’s net interest income would increase by $1,505 million in 2011 and $601 million in 2010 from a 1% upward parallel shift in interest rate. The same as downward change, 1% upward change in interest rate also would result in a bigger increase in the net interest income in 2011 than in 2010.Compared with BOA, 1% upward shift in interest rate has a bigger impact for Chase and smaller impact for Citi. 1% upward shift| 2011| 2010| Bank of America| $1,505 | $601 | JP Morgan Chase| $2,326 | $1,483 | Citi Group| $97 | ($105)| Table 8 The Impact of 1% Upward Shift on Net Interest Income Credit Risk and Losses Main loss reserve adequacy ratios Policy to designate past due loans as non-performing Adequacy of the bank’s allowance for loan losses Disclosure policies relating to loans Appendix BOAIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Held-to maturity debt securities| 35,265 | 35,442 | 427 | 427 | 177 | – | 177 | Loans| 870,520 | 843,392 | 876,739 | 861,695 | (27,128)| (15,044)| (12,084)| Total assets| 905,785 | 878,834 | 877,166 | 862,122 | (26,951)| (15,044)| (11,907)| Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 1,033,041 | 1,033,248 | 1,010,430 | 1,010,460 | 207 | 30 | 177 | Long-term debt| 372,265 | 343,211 | 448,431 | 441,672 | (29,0 54)| (6,759)| (22,295)| Total liabilities| 1,405,306 | 1,376,459 | 1,458,861 | 1,452,132 | (28,847)| (6,729)| (22,118)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | 1,896 | (8,315)| 10,211 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? ? | 6,127 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI? | Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | (4,270)| Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (549)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,308 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 1,446 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 2,754 | JP Morgan ChaseIn $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet| Assets:| ? | ? | ? | ? | ? | ? | ? | Loans| 696,100 | 695,800 | 660,700 | 663,500 | (300)| 2,800 | (3,100)| Other| 66,300 | 66,800 | 64,900 | 65,000 | 500 | 100 | 400 | Total assets| 762,400 | 762,600 | 725,600 | 728,500 | 200 | 2,900 | (2,700)| Liabilities:| ? | ? | ? | ? | ? | ? | ? |Deposits| 1,127,800 | 1,128,300 | 930,400 | 931,500 | 500 | 1,100 | (600)| Accounts payable and other liabilities| 167,000 | 166,900 | 138,200 | 138,200 | (100)| – | (100)| Beneficial interests issued by consolidated VIEs| 66,000 | 66,200 | 77,600 | 77,900 | 200 | 300 | (100)| Long-term debt and junior subordinated deferrable interest debentures| 256,800 | 254,200 | 270,700 | 271,900 | (2,600)| 1,200 | (3,800)| Total liabilities| 1,617,600 | 1,615,600 | 1,416,900 | 1,419,500 | (2,000)| 2,600 | (4,600)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? ? | ? | 2,200 | 300 | 1,900 | Aftertax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | ? | ? | 1,140 | Adjustment s for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 1,067 | Aftertax adjustment for CFH derivatives| ? | ? | ? | ? | ? | ? | (279)| Cash flow hedge| ? | ? | ? | ? | ? | ? | (155)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 1,773 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 18,976 | Full fair value income with information available| ? ? | ? | ? | ? | ? | 20,749 | Citi Group In $ millions| 2011| 2011| 2010| 2010| 2011| 2010| 2011| ? | Carrying Value| Fair Value| Carrying Value| Fair Value| CURG| CURG| URG| Adjustments for assets and liabilities at HC on balance sheet? | Assets:| ? | ? | ? | ? | ? | ? | ? | Investment| 293,400 | 292,400 | 318,200 | 319,000 | (1,000)| 800 | (1,800)| Loans| 614,600 | 603,900 | 605,500 | 584,300 | (10,700)| (21,200)| 10,500 | Total assets| 908,000 | 896,300 | 923,700 | 903,300 | (11,700)| (20,400)| 8,700 | Liabilities:| ? ? | ? | ? | ? | ? | ? | Deposits| 865,900 | 865,800 | 845,000 | 843,200 | (100)| (1,800)| 1,700 | Long-term debt| 323,500 | 313,800 | 381,200 | 384,500 | (9,700)| 3,300 | (13,000)| Total liabilities| 1,189,400 | 1,179,600 | 1,226,200 | 1,227,700 | (9,800)| 1,500 | (11,300)| Pretax adjustments before AFS securities and CFH derivatives| ? | ? | ? | ? | (1,900)| (21,900)| 20,000 | Aftertax adjustments before AFS securities and CFH derivatives| ? ? | ? | ? | ? | ? | 12,000 | Adjustments for assets and liabilities at FV on balance sheet with gains and losses in OCI| Aftertax adjustment for AFS securities| ? | ? | ? | ? | ? | ? | 2,360 | Cash flow hedge| ? | ? | ? | ? | ? | ? | (170)| Total adjustment to net income| ? | ? | ? | ? | ? | ? | 14,190 | Net income as per financial statements| ? | ? | ? | ? | ? | ? | 11,215 | Full fair value income with information available| ? | ? | ? | ? | ? | ? | 25,405 |