Exam 12: Banking Industry: Structure and Competition

The U.S.banking system is considered to be a dual system because

One of the concerns of increased bank consolidation is the reduction in community banks which could result in

Lack of competition in the United States banking industry can be attributed to

The most important developments that have reduced banks cost advantages in the past thirty years include:

The process of transforming otherwise illiquid financial assets into marketable capital market instruments is known as

Rising interest-rate risk

The Glass-Steagall Act,before its repeal in 1999,prohibited commercial banks from

The ability to use one resource to provide different products and services is

Discuss three ways in which U.S.banks can become involved in international banking.

The most significant change in the economic environment that changed the demand for financial products in recent years has been

The Second Bank of the United States was denied a new charter by

Prior to 1980,the Fed set an interest rate ________,a maximum limit,on the interest rate that could be paid on time deposits.

A firm issuing credit cards earns income from

An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are

Financial instruments whose payoffs are linked to previously issued securities are called

Adjustable rate mortgages

The process in which people take their funds out of the banking system seeking higher-yielding securities is called

The regulatory system that has evolved in the United States whereby banks are regulated at the state level,the national level,or both,is known as a

Since 1980

The development of money market mutual funds contributed to the growth of ________ since the money market mutual funds need to hold liquid,high-quality,short-terms assets.