Exam 11: Banking Industry: Structure and Competition

What are the adjustable-rate mortgages?

The business term for economies of scope is ________.

Bank customers perceive Internet banks as being ________.

Sweep accounts ________.

Adjustable rate mortgages ________.

Deposits in European banks denominated in dollars for the purpose of international transactions are known as ________.

Disintermediation resulted from ________.

________ is the process of researching and developing profitable new products and services by financial institutions.

Foreign banks may enter the Canadian financial services industry ________ as a ________ bank(s).

The Finance Act of 1914 required that ________.

Prior to 2008,a U.S.bank's cost of holding reserves equaled ________.

In September 2008,the Reserve Primary Fund,a money market mutual fund,found itself in the situation know as "breaking the buck." This means that ________.

Explain how the dual banking system arose in the United States.

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

Explain why the profitability of traditional banking has declined and how banks have responded.

In this type of arrangement,any balances above a certain amount in a corporation's chequing 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 ________.

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 government institution that has responsibility for the amount of money and credit supplied in the economy as a whole is the ________.

An instrument developed to help investors and institutions hedge interest-rate risk is ________.

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