Question 1

The first thrift institutions were:

Accepted Answer

A) The First and Second Banks of the United States 
B) savings banks and Savings and Loans 
C) credit unions 
D) all the above 
A) The First and Second Banks of the United States 
B) savings banks and Savings and Loans 
C) credit unions 
D) all the above

Question 2

Unit banking means:

Accepted Answer

A) a bank may have only one full-service office 
B) the bank is owned by a unit trust 
C) all branch offices are controlled by a central unit 
D) none of the above 
A) a bank may have only one full-service office 
B) the bank is owned by a unit trust 
C) all branch offices are controlled by a central unit 
D) none of the above

Question 3

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

Accepted Answer

A) True 
 B)False

Question 4

During the colonial period in the nation's history,banks depended on:

Accepted Answer

A) their own issue of paper money 
B) foreign sources for their loanable funds 
C) deposits of foreign currency such as the Spanish dollar 
D) the investment of their own stockholders 
A) their own issue of paper money 
B) foreign sources for their loanable funds 
C) deposits of foreign currency such as the Spanish dollar 
D) the investment of their own stockholders

Question 5

Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called

Accepted Answer

A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act 
A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act

Question 6

Which of the following statements is false?

Accepted Answer

A) Thrift institutions are like commercial banks in that retained earnings and?certificates of deposits add to fund sources. 
B) The larger the volume of assets and deposits in relation to the capital contribution?of the stockholders,the larger the margin of safety for depositors. 
C) Capital funds include capital stock,surplus,and undivided profits. 
D) All the above statements are correct. 
A) Thrift institutions are like commercial banks in that retained earnings and?certificates of deposits add to fund sources. 
B) The larger the volume of assets and deposits in relation to the capital contribution?of the stockholders,the larger the margin of safety for depositors. 
C) Capital funds include capital stock,surplus,and undivided profits. 
D) All the above statements are correct.

Question 7

The Federal Savings and Loan Insurance Corporation:

Accepted Answer

A) has ceased operations and has been replaced by the FDIC in its insuring operations 
B) protects credit unions 
C) insures money market accounts 
D) is responsible for insuring deposits at savings banks 
A) has ceased operations and has been replaced by the FDIC in its insuring operations 
B) protects credit unions 
C) insures money market accounts 
D) is responsible for insuring deposits at savings banks

Question 8

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

Accepted Answer

A) Banks 
B) Contractual savings institutions 
C) Investment banking firms 
D) Brokerage firms 
E) none of the above 
A) Banks 
B) Contractual savings institutions 
C) Investment banking firms 
D) Brokerage firms 
E) none of the above

Question 9

The principal assets of all depository institutions are cash,securities,and loans.

Accepted Answer

A) True 
 B)False

Question 10

Major types of financial institutions in the U.S.include commercial banks,mutual funds,insurance companies,and pension funds.

Accepted Answer

A) True 
 B)False

Question 11

The primary purpose of this Act was to aid the savings and loan industry

Accepted Answer

A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act 
A) Garn-St.Germain Depository Institutions Act 
B) Glass-Steagall Act 
C) Hunt Commission legislation 
D) Depository Institutions Deregulation and Monetary Control Act

Question 12

__________________ is the process by which individual savings are accumulated in depository institutions and,in turn,lent or invested.

Accepted Answer

A) Investing 
B) Financial intermediation 
C) The multiplier effect 
D) Lending 
E) none of the above 
A) Investing 
B) Financial intermediation 
C) The multiplier effect 
D) Lending 
E) none of the above

Question 13

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

Accepted Answer

A) True 
 B)False

Question 14

A ________ which is a security backed by mortgage-backed securities could be "sliced and diced" into different "tranches" are parts such that the different parts would appeal to different investors.

Accepted Answer

A) MPO 
B) CDO 
C) MDS 
D) MDO 
E) none of the above 
A) MPO 
B) CDO 
C) MDS 
D) MDO 
E) none of the above

Question 15

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

Accepted Answer

A) commercial banks 
B) pension funds 
C) insurance companies 
D) all of the above are major financial institutions 
A) commercial banks 
B) pension funds 
C) insurance companies 
D) all of the above are major financial institutions

Question 16

Mutual funds are open-end investment companies that can issue an unlimited number of shares to its investors and use the pooled proceeds to purchase corporate and government securities.

Accepted Answer

A) True 
 B)False

Question 17

Bank solvency is the likelihood that a bank will be unable to meet depositor withdrawal demands and other liabilities when due.

Accepted Answer

A) True 
 B)False

Question 18

The National Banking Act of 1864 provided for:

Accepted Answer

A) federally chartered banks 
B) the establishment of a system of central banks 
C) deregulation and monetary control 
D) the establishment of deposit insurance 
A) federally chartered banks 
B) the establishment of a system of central banks 
C) deregulation and monetary control 
D) the establishment of deposit insurance

Question 19

The Garn-St.Germain Depository Institutions Act,among other things:

Accepted Answer

A) extended the Fed's control to thrift institutions and to commercial banks that are not members of the Fed 
B) enabled depository institutions to issue money market accounts with no regulated interest rate ceiling 
C) was designed to assist the investment banking industry 
D) all the above 
A) extended the Fed's control to thrift institutions and to commercial banks that are not members of the Fed 
B) enabled depository institutions to issue money market accounts with no regulated interest rate ceiling 
C) was designed to assist the investment banking industry 
D) all the above

Question 20

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

Accepted Answer

A) True 
 B)False

The first thrift institutions were:

Unit banking means:

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

During the colonial period in the nation's history,banks depended on:

Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called

Which of the following statements is false?

The Federal Savings and Loan Insurance Corporation:

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

The principal assets of all depository institutions are cash,securities,and loans.

Major types of financial institutions in the U.S.include commercial banks,mutual funds,insurance companies,and pension funds.

The primary purpose of this Act was to aid the savings and loan industry

__________________ is the process by which individual savings are accumulated in depository institutions and,in turn,lent or invested.

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

A ________ which is a security backed by mortgage-backed securities could be "sliced and diced" into different "tranches" are parts such that the different parts would appeal to different investors.

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

Mutual funds are open-end investment companies that can issue an unlimited number of shares to its investors and use the pooled proceeds to purchase corporate and government securities.

Bank solvency is the likelihood that a bank will be unable to meet depositor withdrawal demands and other liabilities when due.

The National Banking Act of 1864 provided for:

The Garn-St.Germain Depository Institutions Act,among other things:

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

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 first thrift institutions were:

Unit banking means:

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

During the colonial period in the nation's history,banks depended on:

Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called

Which of the following statements is false?

The Federal Savings and Loan Insurance Corporation:

__________________ collect premiums on insurance policies and employee/employer contributions from pension fund participants and provide retirement benefits and insurance against major financial losses.

The principal assets of all depository institutions are cash,securities,and loans.

Major types of financial institutions in the U.S.include commercial banks,mutual funds,insurance companies,and pension funds.

The primary purpose of this Act was to aid the savings and loan industry

__________________ is the process by which individual savings are accumulated in depository institutions and,in turn,lent or invested.

Credit unions are cooperative nonprofit organizations that exist primarily to provide member depositors with consumer credit.

A ________ which is a security backed by mortgage-backed securities could be "sliced and diced" into different "tranches" are parts such that the different parts would appeal to different investors.

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

Mutual funds are open-end investment companies that can issue an unlimited number of shares to its investors and use the pooled proceeds to purchase corporate and government securities.

Bank solvency is the likelihood that a bank will be unable to meet depositor withdrawal demands and other liabilities when due.

The National Banking Act of 1864 provided for:

The Garn-St.Germain Depository Institutions Act,among other things:

Part of the reason that the Banking Act of 1933 was passed was in response to the large numbers of bank failures.

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