Exam 14: Investment Banking, insurance, and Other Sources of Fee Income

A mutual fund is a savings instrument where the customer makes cash payments to an investment manager who invests them in earning assets.Later the purchaser receives a stream of income from these assets.

_______________ are financial advisors to corporations,governments,and other large institutions.They advise their clients on issues relating to raising new capital,entering new market areas,etc.

One of the advantages offered by mutual funds is having a ____________ who monitors the performance of each security held by the fund.

A virtually regulated private investment pool,which primarily offers its wealthy investors and large institutions,the possibility of higher investment returns by taking on relatively risky assets is called:

When a bank is expecting that the overall risk of FHC will be reduced when they combine investment banking services with the traditional banking services,what type of effect are they expecting?

A(n)_________________________ is a contract that promises to reimburse policy holders for personal injury,property damage,and other losses,in exchange for the policy holder's premium payments.

A nonproprietary mutual fund is where the bank acts as a broker for a nonaffiliated mutual fund but does not act as an investment advisor.

Trust services are a relatively new service for banks.

A(n)_________________________ promises a customer,who deposits a lump sum,a guaranteed rate of return over the life of the contract.

Among potential advantages of combining various financial services activities in one FHC,all of the following can be included except:

Customers have no rights to opt out of having their private information collected by banks and other financial-service firms and being shared with other financial-service firms.

Recently,both investment banks and commercial banks have come under a pressure to raise large amounts of capital,which is designed to:

The _________________________ effect brings more than one financial-service industries together to reduce the overall risk of the revenue flows through the company.