Question 1

Deposits in European banks denominated in dollars for the purpose of international transactions are known as ________.

Accepted Answer

A) Eurodollars 
B) European Currency Units 
C) European Monetary Units 
D) International Monetary Units 
A) Eurodollars 
B) European Currency Units 
C) European Monetary Units 
D) International Monetary Units

Question 2

The regulatory system that permitted the organization of a bank by any group that met certain criteria is known as a ________.

Accepted Answer

A) bilateral regulatory system 
B) tiered regulatory system 
C) two-tiered regulatory system 
D) free banking system 
A) bilateral regulatory system 
B) tiered regulatory system 
C) two-tiered regulatory system 
D) free banking system

Question 3

A disadvantage of virtual banks (clicks)is that ________.

Accepted Answer

A) their hours are more limited than physical banks 
B) they are more secure than physical banks 
C) they are more costly to operate than physical banks 
D) customers worry about the security of on-line transactions 
A) their hours are more limited than physical banks 
B) they are more secure than physical banks 
C) they are more costly to operate than physical banks 
D) customers worry about the security of on-line transactions

Question 4

What are the adjustable-rate mortgages?

Accepted Answer

Adjustable-rate mortgages are

Question 5

Eurodollars are ________.

Accepted Answer

A) dollar-dominated deposits held in banks outside the United States 
B) deposits held by U.S. banks in Europe 
C) deposits held by U.S. banks in foreign countries 
D) dollar-dominated deposits held in U.S. banks by Europeans 
A) dollar-dominated deposits held in banks outside the United States 
B) deposits held by U.S. banks in Europe 
C) deposits held by U.S. banks in foreign countries 
D) dollar-dominated deposits held in U.S. banks by Europeans

Question 6

Explain how the dual banking system arose in the United States.

Accepted Answer

The modern US system because with all co

Question 7

Bank customers perceive Internet banks as being ________.

Accepted Answer

A) more secure than physical bank branches 
B) a better method for the purchase of long-term savings products 
C) better at keeping customer information private 
D) prone to many more technical problems 
A) more secure than physical bank branches 
B) a better method for the purchase of long-term savings products 
C) better at keeping customer information private 
D) prone to many more technical problems

Question 8

The six largest chartered banks in Canada together hold ________ of the assets in the industry.

Accepted Answer

A) over 90 percent 
B) nearly 75 percent 
C) just over 50 percent 
D) 25 percent 
A) over 90 percent 
B) nearly 75 percent 
C) just over 50 percent 
D) 25 percent

Question 9

The Finance Act of 1914 required that ________.

Accepted Answer

A) local banks be subject to the same regulations as national banks 
B) national banks establish branches in large cities 
C) the Department of Finance to act as a lender of last resort 
D) the Bank of Canada to act as a lender of last resort 
A) local banks be subject to the same regulations as national banks 
B) national banks establish branches in large cities 
C) the Department of Finance to act as a lender of last resort 
D) the Bank of Canada to act as a lender of last resort

Question 10

The 2001 Bank Reform Act states that ________.

Accepted Answer

A) medium sized banks can be closely held if there is a 35 percent public float 
B) large banks with shareholders equity greater than $5 billion can be closely held 
C) all banks, regardless of size and capitalization, can be closely held 
D) small banks must be widely held 
A) medium sized banks can be closely held if there is a 35 percent public float 
B) large banks with shareholders equity greater than $5 billion can be closely held 
C) all banks, regardless of size and capitalization, can be closely held 
D) small banks must be widely held

Question 11

Prior to the Bank Act Reform, the organizational structure of Canada's bank financial groups was the ________ model.

Accepted Answer

A) bank-as-parent 
B) financial liberalization 
C) securitization 
D) British universal 
A) bank-as-parent 
B) financial liberalization 
C) securitization 
D) British universal

Question 12

The U.S. banking system is considered to be a dual system because ________.

Accepted Answer

A) banks offer both chequing and savings accounts 
B) it actually includes both banks and thrift institutions 
C) it is regulated by both state and federal governments 
D) it was established before the Civil War, requiring separate regulatory bodies for the North and South 
A) banks offer both chequing and savings accounts 
B) it actually includes both banks and thrift institutions 
C) it is regulated by both state and federal governments 
D) it was established before the Civil War, requiring separate regulatory bodies for the North and South

Exam 11: Banking Industry: Structure and Competition

Deposits in European banks denominated in dollars for the purpose of international transactions are known as ________.

The regulatory system that permitted the organization of a bank by any group that met certain criteria is known as a ________.

A disadvantage of virtual banks (clicks)is that ________.

What are the adjustable-rate mortgages?

Eurodollars are ________.

Explain how the dual banking system arose in the United States.

Bank customers perceive Internet banks as being ________.

The six largest chartered banks in Canada together hold ________ of the assets in the industry.

The Finance Act of 1914 required that ________.

The 2001 Bank Reform Act states that ________.

Prior to the Bank Act Reform, the organizational structure of Canada's bank financial groups was the ________ model.

The U.S. banking system is considered to be a dual system because ________.

Why Study Money, Banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, Inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Financial Crises in Emerging Markets

The ISLM Model

Non-Bank Finance

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