Question 1

__________________ accept savings from individuals and then lend these pooled savings to businesses,governments,and individuals.

Accepted Answer

A) Insurance companies 
B) Commercial finance companies 
C) Government institutions 
D) Investment banks 
E) none of the above 
A) Insurance companies 
B) Commercial finance companies 
C) Government institutions 
D) Investment banks 
E) none of the above

Question 2

Which of the following would not be part of primary bank capital?

Accepted Answer

A) bank premises 
B) common stock of the bank 
C) loan loss reserves 
D) perpetual preferred stock 
A) bank premises 
B) common stock of the bank 
C) loan loss reserves 
D) perpetual preferred stock

Question 3

The holding-company device to control two or more commercial banks:

Accepted Answer

A) has diminished in importance in recent years 
B) has increased in importance in recent years 
C) is limited to state chartered banks 
D) is sometimes described as chain banking 
A) has diminished in importance in recent years 
B) has increased in importance in recent years 
C) is limited to state chartered banks 
D) is sometimes described as chain banking

Question 4

Savings and loans were first known as building societies.

Accepted Answer

A) True 
 B)False

Question 5

The Federal Deposit Insurance Corporation Improvement Act of 1991:

Accepted Answer

A) transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC 
B) required that failed banks be handled in such a way as to provide the lowest cost to the FDIC 
C) increased federal deposit insurance from $40,000 to $100,000 for each account 
D) extended federal deposit insurance to S&L depositors 
A) transferred the reserves and functions of the Federal Savings and Loan Insurance Corporation to the FDIC 
B) required that failed banks be handled in such a way as to provide the lowest cost to the FDIC 
C) increased federal deposit insurance from $40,000 to $100,000 for each account 
D) extended federal deposit insurance to S&L depositors

Question 6

Branch banking is permitted on an interstate basis by all state banks.

Accepted Answer

A) True 
 B)False

Question 7

The item on the liabilities and equity section of a bank's balance sheet that represents the largest proportion of a typical bank's assets is:

Accepted Answer

A) deposits 
B) owner's capital 
C) securities 
D) federal funds 
A) deposits 
B) owner's capital 
C) securities 
D) federal funds

Question 8

Investment 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 9

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

Accepted Answer

A) True 
 B)False

Question 10

One of the most significant advantages claimed by branch banking is:

Accepted Answer

A) lower interest rates are usually available from branch bank 
B) convenience for customers 
C) banking operations are easier to regulate 
D) all the above 
A) lower interest rates are usually available from branch bank 
B) convenience for customers 
C) banking operations are easier to regulate 
D) all the above

__________________ accept savings from individuals and then lend these pooled savings to businesses,governments,and individuals.

Which of the following would not be part of primary bank capital?

The holding-company device to control two or more commercial banks:

Savings and loans were first known as building societies.

The Federal Deposit Insurance Corporation Improvement Act of 1991:

Branch banking is permitted on an interstate basis by all state banks.

The item on the liabilities and equity section of a bank's balance sheet that represents the largest proportion of a typical bank's assets is:

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

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

One of the most significant advantages claimed by branch banking is:

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

__________________ accept savings from individuals and then lend these pooled savings to businesses,governments,and individuals.

Which of the following would not be part of primary bank capital?

The holding-company device to control two or more commercial banks:

Savings and loans were first known as building societies.

The Federal Deposit Insurance Corporation Improvement Act of 1991:

Branch banking is permitted on an interstate basis by all state banks.

The item on the liabilities and equity section of a bank's balance sheet that represents the largest proportion of a typical bank's assets is:

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

Mortgage banking firms provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes.

One of the most significant advantages claimed by branch banking is:

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