Question 1

The primary regulator of nonbanking activities of bank holding companies is

Accepted Answer

A)  Office of the Comptroller of the Currency 
B)  Federal Deposit Insurance Corporation 
C)  Board of Governors of the Federal Reserve System 
D)  The Office of Thrift Supervision 
A)  Office of the Comptroller of the Currency 
B)  Federal Deposit Insurance Corporation 
C)  Board of Governors of the Federal Reserve System 
D)  The Office of Thrift Supervision C

Question 2

A trust company is a corporation formed for the purpose of taking, accepting, and executing trust, as well as acting a trustee and providing other services.

Accepted Answer

A) True 
 B)False  True

Question 3

Bank holding companies can engage the performing of appraisals of real estate and commercial property.

Accepted Answer

A) True 
 B)False  True

Question 4

A marital trust and revocable living trust are devices used in estate planning.

Accepted Answer

A) True 
 B)False

Question 5

Commercial banks can operate insurance companies and mutual funds in order to sell annuities and money market mutual funds.

Accepted Answer

A) True 
 B)False

Question 6

Which, if any of the following accounts is not covered by FDIC insurance?

Accepted Answer

A)  A $100,000 savings account in your name 
B)  A $50,000 checking account in your name at the same bank 
C)  A $100,000 joint account with your mother 
D)  All of the accounts are covered 
A)  A $100,000 savings account in your name 
B)  A $50,000 checking account in your name at the same bank 
C)  A $100,000 joint account with your mother 
D)  All of the accounts are covered

Question 7

The term "banking" is defined by laws and bank regulators.

Accepted Answer

A) True 
 B)False

Question 8

Zero balance accounts are used in connection with

Accepted Answer

A)  Controlled disbursement 
B)  Annuities 
C)  Business trusts 
D)  Mutual funds 
A)  Controlled disbursement 
B)  Annuities 
C)  Business trusts 
D)  Mutual funds

Question 9

The syndication process is similar to

Accepted Answer

A)  Underwriting 
B)  Insurance 
C)  Trusts 
D)  Controlled disbursement 
A)  Underwriting 
B)  Insurance 
C)  Trusts 
D)  Controlled disbursement

Question 10

Sweep accounts are used to

Accepted Answer

A)  Reduce the time necessary to collect bills 
B)  Transfer funds into a revocable trust 
C)  Get around the limitations of the Glass-Steagal Act 
D)  Increase interest income 
A)  Reduce the time necessary to collect bills 
B)  Transfer funds into a revocable trust 
C)  Get around the limitations of the Glass-Steagal Act 
D)  Increase interest income

Question 11

If you have an account for a sole proprietorship at the same bank where you have a checking account, your FDIC insurance coverage is $100,000.

Accepted Answer

A) True 
 B)False

Question 12

Trade finance refers to letters of credit, foreign exchange, and other financial services that facilitate flows of funds.

Accepted Answer

A) True 
 B)False

Question 13

"Firewalls," are used by banks to separate investment banking from cash management services.

Accepted Answer

A) True 
 B)False

Question 14

The Sherman Antitrust Act and the Clayton Act were concerned with

Accepted Answer

A)  Business trusts 
B)  Credit shelter trust 
C)  Testamentary trusts 
D)  Trotten trusts 
A)  Business trusts 
B)  Credit shelter trust 
C)  Testamentary trusts 
D)  Trotten trusts

Question 15

When a trustee hires a trust company to manage a corporate benefits program, the trust company is acting as an _____ for the trustee.

Accepted Answer

A)  Agent 
B)  Beneficiary 
C)  Grantor 
D)  Invigilator 
A)  Agent 
B)  Beneficiary 
C)  Grantor 
D)  Invigilator

Question 16

Annuities are used to

Accepted Answer

A)  Provide cash management services to small business 
B)  To provide tax deferred income to retirees 
C)  Like money market funds, they are a substitute for bank deposits 
D)  As a means of providing income in business trusts 
A)  Provide cash management services to small business 
B)  To provide tax deferred income to retirees 
C)  Like money market funds, they are a substitute for bank deposits 
D)  As a means of providing income in business trusts

Question 17

A zero balance account is a cash concentration technique.

Accepted Answer

A) True 
 B)False

Question 18

A Real Estate Investment Trust (REIT) is a device used by investors to investors to buy shares in a trust that invests those funds in real estate.

Accepted Answer

A) True 
 B)False

Question 19

Bank sweep accounts are used to transfer funds from non-interest bearing accounts into bank syndicate accounts.

Accepted Answer

A) True 
 B)False

Question 20

Lockboxes are part of the ______ services offered by banks.

Accepted Answer

A)  Trust 
B)  Trade finance 
C)  Data Processing 
D)  Cash management 
A)  Trust 
B)  Trade finance 
C)  Data Processing 
D)  Cash management

The primary regulator of nonbanking activities of bank holding companies is

A trust company is a corporation formed for the purpose of taking, accepting, and executing trust, as well as acting a trustee and providing other services.

Bank holding companies can engage the performing of appraisals of real estate and commercial property.

A marital trust and revocable living trust are devices used in estate planning.

Commercial banks can operate insurance companies and mutual funds in order to sell annuities and money market mutual funds.

Which, if any of the following accounts is not covered by FDIC insurance?

The term "banking" is defined by laws and bank regulators.

Zero balance accounts are used in connection with

The syndication process is similar to

Sweep accounts are used to

If you have an account for a sole proprietorship at the same bank where you have a checking account, your FDIC insurance coverage is $100,000.

Trade finance refers to letters of credit, foreign exchange, and other financial services that facilitate flows of funds.

"Firewalls," are used by banks to separate investment banking from cash management services.

The Sherman Antitrust Act and the Clayton Act were concerned with

When a trustee hires a trust company to manage a corporate benefits program, the trust company is acting as an _____ for the trustee.

Annuities are used to

A zero balance account is a cash concentration technique.

A Real Estate Investment Trust (REIT) is a device used by investors to investors to buy shares in a trust that invests those funds in real estate.

Bank sweep accounts are used to transfer funds from non-interest bearing accounts into bank syndicate accounts.

Lockboxes are part of the ______ services offered by banks.

Functions and Forms of Banking

The Bank Regulatory Environment

Evaluating Bank Performance

Bank Valuation

An Overview of Assetliability Management Alm

Techniques of Assetliability Management: Futures, Options, and Swaps

Investment Management

Credit Evaluation Process

Commercial and Industrial Lending

Real Estate and Consumer Lending

Liquidity Management

Capital Management

Managing Liabilities

Off-Balance Sheet Activities

Securities, Investment Insurance Products

Electronic Banking

Global Financial Services

Filters

Exam 16: Other Financial Services

The primary regulator of nonbanking activities of bank holding companies is

A trust company is a corporation formed for the purpose of taking, accepting, and executing trust, as well as acting a trustee and providing other services.

Bank holding companies can engage the performing of appraisals of real estate and commercial property.

A marital trust and revocable living trust are devices used in estate planning.

Commercial banks can operate insurance companies and mutual funds in order to sell annuities and money market mutual funds.

Which, if any of the following accounts is not covered by FDIC insurance?

The term "banking" is defined by laws and bank regulators.

Zero balance accounts are used in connection with

The syndication process is similar to

Sweep accounts are used to

If you have an account for a sole proprietorship at the same bank where you have a checking account, your FDIC insurance coverage is $100,000.

Trade finance refers to letters of credit, foreign exchange, and other financial services that facilitate flows of funds.

"Firewalls," are used by banks to separate investment banking from cash management services.

The Sherman Antitrust Act and the Clayton Act were concerned with

When a trustee hires a trust company to manage a corporate benefits program, the trust company is acting as an _____ for the trustee.

Annuities are used to

A zero balance account is a cash concentration technique.

A Real Estate Investment Trust (REIT) is a device used by investors to investors to buy shares in a trust that invests those funds in real estate.

Bank sweep accounts are used to transfer funds from non-interest bearing accounts into bank syndicate accounts.

Lockboxes are part of the ______ services offered by banks.

Functions and Forms of Banking

The Bank Regulatory Environment

Evaluating Bank Performance

Bank Valuation

An Overview of Assetliability Management Alm

Techniques of Assetliability Management: Futures, Options, and Swaps

Investment Management

Credit Evaluation Process

Commercial and Industrial Lending

Real Estate and Consumer Lending

Liquidity Management

Capital Management

Managing Liabilities

Off-Balance Sheet Activities

Securities, Investment Insurance Products

Electronic Banking

Global Financial Services

Filters