Question 1

The Equity Capital Ratio for a bank with owners' equity of $3 million and total assets of $50 million would be:

Accepted Answer

A) 3% 
B) 6% 
C) 2.83% 
D) 5.66% 
E) none of the above 
A) 3% 
B) 6% 
C) 2.83% 
D) 5.66% 
E) none of the above B

Question 2

The _______________________ was designed mainly to assist the savings and loan industry.

Accepted Answer

A) Glass Steagall Act 
B) Gramm-Leach-Bliley Act 
C) Garn-Saint Germain Act 
D) Depository Institutions Deregulation and Monetary Control Act 
A) Glass Steagall Act 
B) Gramm-Leach-Bliley Act 
C) Garn-Saint Germain Act 
D) Depository Institutions Deregulation and Monetary Control Act C

Question 3

Commercial banks provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

Accepted Answer

A) True 
 B)False  False

Question 4

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

Accepted Answer

A) True 
 B)False

Question 5

The primary type of liability on a bank's balance sheet is deposits.

Accepted Answer

A) True 
 B)False

Question 6

_______________ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes,whereas ______________ originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

Accepted Answer

A) thrift institutions,savings and loans 
B) thrift institutions,mortgage banking firms 
C) property brokers,savings and loans 
D) property brokers,mortgage banking firms 
E) none of the above 
A) thrift institutions,savings and loans 
B) thrift institutions,mortgage banking firms 
C) property brokers,savings and loans 
D) property brokers,mortgage banking firms 
E) none of the above

Question 7

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England ,New York,and New Jersey,with most of their assets continuing to be invested in mortgage loans.

Accepted Answer

A) Commercial banks 
B) Thrift institutions 
C) Credit unions 
D) Finance companies 
E) none of the above 
A) Commercial banks 
B) Thrift institutions 
C) Credit unions 
D) Finance companies 
E) none of the above

Question 8

Another name for an open-end investment company is a:

Accepted Answer

A) brokerage firm 
B) finance company 
C) mutual fund 
D) investment bank 
A) brokerage firm 
B) finance company 
C) mutual fund 
D) investment bank

Question 9

Today,reserve requirements imposed by the Federal Reserve apply only to member banks.

Accepted Answer

A) True 
 B)False

Question 10

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

Accepted Answer

A) True 
 B)False

Question 11

_______________ are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit,including the financing of automobiles and the purchase of homes,and derive their funds almost entirely from the savings of their members.

Accepted Answer

A) Commercial banks 
B) Thrift institutions 
C) Savings banks 
D) Credit unions 
E) none of the above 
A) Commercial banks 
B) Thrift institutions 
C) Savings banks 
D) Credit unions 
E) none of the above

Question 12

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

Accepted Answer

A) commercial bank 
B) investment bank 
C) savings and loan 
D) finance company 
A) commercial bank 
B) investment bank 
C) savings and loan 
D) finance company

Question 13

The National Banking Act of 1864:

Accepted Answer

A) established minimum capital requirements for federally chartered banks 
B) regulated loans with respect to safety and liquidity 
C) established minimum reserve requirements 
D) all of the above 
A) established minimum capital requirements for federally chartered banks 
B) regulated loans with respect to safety and liquidity 
C) established minimum reserve requirements 
D) all of the above

Question 14

The First Bank of the United States ceased operations because:

Accepted Answer

A) it was superseded by the Second Bank of the United States 
B) of the opposition of state banking interests 
C) its charter had expired and there was no provision for its renewal 
D) the need to provide financing for the Civil War was not supported by Congress 
A) it was superseded by the Second Bank of the United States 
B) of the opposition of state banking interests 
C) its charter had expired and there was no provision for its renewal 
D) the need to provide financing for the Civil War was not supported by Congress

Question 15

The Federal Deposit Insurance Corporation:

Accepted Answer

A) shares its operation with the Federal Reserve System by having the same?board of directors 
B) is owned by member banks of the Federal Reserve System 
C) provides strength for insured banks by partial ownership of their stock 
D) has as one of its board members the United States Comptroller of the Currency 
A) shares its operation with the Federal Reserve System by having the same?board of directors 
B) is owned by member banks of the Federal Reserve System 
C) provides strength for insured banks by partial ownership of their stock 
D) has as one of its board members the United States Comptroller of the Currency

Question 16

_______________ are non-commercial bank depository institutions that include savings banks and credit unions,which accumulate individual savings and lend primarily to other individuals.

Accepted Answer

A) Thrift institutions 
B) Securities firms 
C) Pension funds 
D) Finance firms 
E) none of the above 
A) Thrift institutions 
B) Securities firms 
C) Pension funds 
D) Finance firms 
E) none of the above

Question 17

Investment companies (mutual funds),investment banking firms,and brokerage firms are the primary types of ____________.

Accepted Answer

A) banks 
B) securities firms 
C) pension funds 
D) finance companies 
E) none of the above 
A) banks 
B) securities firms 
C) pension funds 
D) finance companies 
E) none of the above

Question 18

Major types of financial institutions include all of the following EXCEPT:

Accepted Answer

A) commercial banks 
B) pension funds 
C) insurance companies 
D) brokerage firms 
A) commercial banks 
B) pension funds 
C) insurance companies 
D) brokerage firms

Question 19

The principal assets of savings banks are:

Accepted Answer

A) securities 
B) vault cash and deposits at other banks 
C) real estate mortgages 
D) all the above 
A) securities 
B) vault cash and deposits at other banks 
C) real estate mortgages 
D) all the above

Question 20

The primary types of assets on a bank's balance sheet include cash and deposits.

Accepted Answer

A) True 
 B)False

The Equity Capital Ratio for a bank with owners' equity of $3 million and total assets of $50 million would be:

The _______________________ was designed mainly to assist the savings and loan industry.

Commercial banks provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

The primary type of liability on a bank's balance sheet is deposits.

_ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes,whereas originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England ,New York,and New Jersey,with most of their assets continuing to be invested in mortgage loans.

Another name for an open-end investment company is a:

Today,reserve requirements imposed by the Federal Reserve apply only to member banks.

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

_______________ are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit,including the financing of automobiles and the purchase of homes,and derive their funds almost entirely from the savings of their members.

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

The National Banking Act of 1864:

The First Bank of the United States ceased operations because:

The Federal Deposit Insurance Corporation:

_______________ are non-commercial bank depository institutions that include savings banks and credit unions,which accumulate individual savings and lend primarily to other individuals.

Investment companies (mutual funds),investment banking firms,and brokerage firms are the primary types of ____________.

Major types of financial institutions include all of the following EXCEPT:

The principal assets of savings banks are:

The primary types of assets on a bank's balance sheet include cash and deposits.

The Financial Environment

Money and the Monetary System

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 3: Banks and Other Financial Institutions

The Equity Capital Ratio for a bank with owners' equity of $3 million and total assets of $50 million would be:

The _______________________ was designed mainly to assist the savings and loan industry.

Commercial banks provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

Insurance companies sell shares in their firms to individuals and invest the pooled proceeds in corporate and government securities.

The primary type of liability on a bank's balance sheet is deposits.

_______________ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes,whereas ______________ originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

_______________ accept the savings of individuals and lend pooled savings to individuals primarily in the form of mortgage loans and operate almost entirely in New England ,New York,and New Jersey,with most of their assets continuing to be invested in mortgage loans.

Another name for an open-end investment company is a:

Today,reserve requirements imposed by the Federal Reserve apply only to member banks.

The Bretton Woods Agreement was an agreement between major central banks to adopt capital adequacy requirements for internationally involved banks.

_______________ are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit,including the financing of automobiles and the purchase of homes,and derive their funds almost entirely from the savings of their members.

An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n)

The National Banking Act of 1864:

The First Bank of the United States ceased operations because:

The Federal Deposit Insurance Corporation:

_______________ are non-commercial bank depository institutions that include savings banks and credit unions,which accumulate individual savings and lend primarily to other individuals.

Investment companies (mutual funds),investment banking firms,and brokerage firms are the primary types of ____________.

Major types of financial institutions include all of the following EXCEPT:

The principal assets of savings banks are:

The primary types of assets on a bank's balance sheet include cash and deposits.

The Financial Environment

Money and the Monetary System

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

_ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes,whereas originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.