Exam 11: Banking Industry: Structure and Competition

Both ________ and ________ were financial innovations that occurred because of interest rate volatility.

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

Which bank regulatory agency has the sole regulatory authority over bank holding companies?

Financial innovation has caused

The most important source of the changes in supply conditions that stimulate financial innovation has been the

The Federal Reserve Act of 1913 required all ________ banks to become members of the Federal Reserve System,while ________ banks could choose to become members of the system.

As the banking system in the United States evolves,it is expected that

Bank customers perceive Internet-only banks as being

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

Sweep accounts

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

Credit cards date back to

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.

The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains,in part,the passage of

Adjustable rate mortgages

Like the dual banking system for commercial banks,thrifts can have either ________ or ________ charters.

The spectacular growth in international banking can be explained by

Mutual savings banks are primarily regulated by

The legislation that separated investment banking from commercial banking until its repeal in 1999 is known as the

Experts predict that the future structure of the U.S.banking industry will have