Exam 11: Banking Industry: Structure and Competition

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 ________.

Describe the characteristics of cooperative banks: credit unions and caisses populaires.

According to Edward Kane, because the banking industry is one of the most ________ industries in America, it is an industry in which ________ is especially likely to occur.

The main center of the Eurodollar market is ________.

Credit unions are usually ________.

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

The spectacular growth in international banking can be explained by ________.

Banking consolidation in Canada will result in ________.

The Bank Act Reform took effect in ________.

One advantage of the holding company form of corporate ownership is that ________.

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 ________.

What is the international experience on the separation of banking and other financial services industries throughout the world? What are the main frameworks ?

The development of money market mutual funds contributed to the growth of ________ since the money market mutual funds need to hold liquid, high-quality, short-terms assets.

In the 1950s the interest rate on three-month Treasury bills fluctuated between 1 percent and 5.5 percent; in the 1980s it fluctuated between ________ percent and ________ percent.

The agreement to provide a standardized commodity to a buyer on a specific date at a specific future price is ________.

Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as ________.

What bonds are commonly called "junk bonds"? Why innovations in computer technology helped the "junk bonds" market?

The presence of so many commercial banks in the United States is most likely the result of ________.

So-called fallen angels differ from junk bonds in that ________.

The most significant change in the economic environment that changed the demand for financial products in recent years has been ________.