Exam 11: Banking Industry: Structure and Competition

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.

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

Adjustable rate mortgages

Uncertainty about interest-rate movements and returns is called

Currency circulated by banks that could be redeemed for gold was called

Sweep accounts which were created to avoid reserve requirements became possible because of a change in

Disintermediation resulted from

In 1977,he pioneered the concept of selling new public issues of junk bonds for companies that had not yet achieved investment-grade status.

The legislation that overturned the prohibition on interstate banking is

Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been

The business term for economies of scope is

A major difference between the United States and Japanese banking systems is that

Before 1863

Automated teller machines

A(n)________ is a subsidiary of a U.S.bank that is engaged primarily in international banking.

The process in which people seeking higher yielding securities take their funds out of the banking system thus restricting the amount of funds banks can lend is called

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.

________ is creating a marketable capital market instrument by bundling a portfolio of mortgage or auto loans.

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

The decline in traditional banking internationally can be attributed to