Exam 12: Banking Industry: Structure and Competition

Foreign banks may engage in banking activities in the United States by opening all of the following except

In a ________ banking system,commercial banks engage in securities underwriting,but legal subsidiaries conduct the different activities.Also,banking and insurance are not typically undertaken together in this system.

In this type of arrangement,any balances above a certain amount in a corporation's checking account at the end of the business day are "removed" and invested in overnight securities that pay the corporation interest.This innovation is referred to as a

The Federal Reserve Act required all ________ banks to become members of the Federal Reserve System,while ________ banks could choose to become members of the system.

As a result of the global financial crisis several of the large,free-standing investment banking firms chose to become bank holding companies.This means that they will now be regulated by

Banks have attempted to maintain adequate profit levels by

The legislation that effectively prohibited banks from branching across state lines and forced all national banks to conform to the branching regulations in the state in which they reside is the

Banks responded to disintermediation by

According to Edward Kane,because the banking industry is one of the most ________ industries in America,it is an industry in which ________ is especially likely to occur.

In the 1950s the interest rate on three-month Treasury bills fluctuated between 1 percent and 3.5 percent; in the 1980s it fluctuated between ________ percent and ________ percent.

Deposits in European banks denominated in dollars for the purpose of international transactions are known as

Under the Gramm-Leach-Bliley Act the oversight of the securities activities of bank holding companies belongs to

An essential characteristic of credit unions is that

________ is the process of researching and developing profitable new products and services by financial institutions.

Prior to 1863,all commercial banks in the United States

The government institution that has responsibility for the amount of money and credit supplied in the economy as a whole is the

State banks that are not members of the Federal Reserve System are most likely to be examined by the

One factor contributing to the decline in cost advantages that banks once had is the

The agreement to provide a standardized commodity to a buyer on a specific date at a specific future price is

The legislation overturning the Glass-Steagall Act is