Exam 3: Banks and Other Financial Institutions

_______________ provide loans directly to consumers and businesses and help borrowers obtain mortgage loans on real property.

_______________ 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.

Bank solvency reflects the ability to meet depositor withdrawals and to pay off other liabilities when due.

The _______________________ was designed to reduce or eliminate interest rate limitations and increase access to various sources of funds available to banks and thrifts and expand the Federal Reserve's control over thrifts and non-member banks.

The most basic functions of depository institutions are:

Savings banks have nearly three quarters of their assets in the form of:

Capital notes:

The Glass-Steagall Act was repealed with the passage of the Gramm-Leach-Bliley Act of 1999.

Foreign banks in the United States:

An organization that received contributions from employees and/or their employers and invests the proceeds on behalf of the employees for use during their retirement years is called a (n)

The Bank Holding Company Act of 1956:

The adequacy of capital for commercial banks as measured by regulatory authorities is:

Legislation that permits depository institutions to compete with money market mutual funds on an equal basis with respect to interest rates offered to investors is the:

The three basic ways to clear a check through the U.S.banking system includes all of the following EXCEPT:

An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)

The _______________________ made it possible for banks to receive federal charters and provided a basis for national banking laws.

The main provisions of the Monetary Control Act of 1980 are deregulation and monetary control.

Pension funds receive contributions from employees and/or their employers and invest the proceeds on behalf of the employees for use during their retirement years.

The effective rate of interest is generally lower on a standard loan than an otherwise equivalent discount loan.

Early chartered banks included: