Exam 14: Banking and Financial Services: Regulations, Operations, and Trends

An institution providing services such as clearing of checks, management of security portfolios, tax advice and computer processing is called a:

A system for delivery of banking services which, according to your text, makes "every customer a branch" is:

With the growth in nontraditional services, noninterest margin is now a more important indicator of bank profitability than is the net interest margin.

One of the reasons that financial services holding companies were allowed to be created in the United States was to allow U.S. banking firms to compete with the leading European banks.

Securitization of bank loans:

Banks that provide not only deposit, loan and security underwriting services but also consulting, insurance and real estate sales are known as:

Deposits held by a bank with other banks are designed to "pay" for correspondent banking services.

Because of new bank management techniques designed to foster greater fee income, banks today hold much more cash (as a percentage of assets) than in previous times.

Today, bankers are willing to accept greater risk because of greater volatility in the economy.

During the past quarter century the number of US commercial banks has dropped from about 14,000 to less than 7500.

The agreement that pledged Europe to a single currency and unified financial system was the:

Bank failures have recently increased because of:

Bank holding companies originated in the 19th century.

Institutions known as ____ deal in securities issued by their customers to gather funds from the stock and bond markets.

Problem loans reduce bank revenues, raise operating expenses and force bankers to re-examine their relationships with customers and redesign the terms they are offering on loan contracts.

In 2008, U.S. registered holding companies numbered close to:

Loan officers are usually willing to make a loan if they can find one convenient, reasonably secure source of loan repayment.

Given the following information on the revenues and expenses of First National Bank, determine the bank's net income after taxes for the year just concluded.

Primary reserves include deposits held at the Federal Reserve banks.

The largest bank ever to fail in U.S. history was: