Question 1

Customer loans are classified on a DI's balance sheet as

Accepted Answer

A) assets,because the DI's major asset is its client base. 
B) liabilities,because the customer may default on the loan. 
C) assets,because the DI earns servicing fees on the loan. 
D) liabilities,because the DI must transfer funds to the borrower at the initiation of the loan. 
E) assets,because DIs originate and monitor loan portfolios. 
A) assets,because the DI's major asset is its client base. 
B) liabilities,because the customer may default on the loan. 
C) assets,because the DI earns servicing fees on the loan. 
D) liabilities,because the DI must transfer funds to the borrower at the initiation of the loan. 
E) assets,because DIs originate and monitor loan portfolios.

Question 2

The primary objective of the Riegle-Neal Act (1994)was to ease branching across state lines by banks.

Accepted Answer

A) True 
 B)False

Question 3

Depository institutions (DIs)play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy primarily because

Accepted Answer

A) loans to corporations are part of the money supply. 
B) bank loans are highly regulated. 
C) savings institutions provide a large amount of credit to finance residential real estate. 
D) DI deposits are a major portion of the money supply. 
A) loans to corporations are part of the money supply. 
B) bank loans are highly regulated. 
C) savings institutions provide a large amount of credit to finance residential real estate. 
D) DI deposits are a major portion of the money supply.

Question 4

Compared to households,FIs often have economies of scale when purchasing or selling securities issued by businesses and governments.

Accepted Answer

A) True 
 B)False

Question 5

A consumer lending function is performed by each of the following FIs EXCEPT

Accepted Answer

A) mutual funds. 
B) finance companies. 
C) pension funds. 
D) depository institutions. 
A) mutual funds. 
B) finance companies. 
C) pension funds. 
D) depository institutions.

Question 6

The qualified thrift lender test is designed to ensure that

Accepted Answer

A) a floor is set for the mortgage related assets held by savings institutions. 
B) a ceiling is set on the mortgage related assets held by commercial banks. 
C) savings associations are covered by risk-based deposit insurance premiums. 
D) an interest rate ceiling is imposed on small savings and time deposits at savings institutions. 
A) a floor is set for the mortgage related assets held by savings institutions. 
B) a ceiling is set on the mortgage related assets held by commercial banks. 
C) savings associations are covered by risk-based deposit insurance premiums. 
D) an interest rate ceiling is imposed on small savings and time deposits at savings institutions.

Customer loans are classified on a DI's balance sheet as

The primary objective of the Riegle-Neal Act (1994)was to ease branching across state lines by banks.

Depository institutions (DIs)play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy primarily because

Compared to households,FIs often have economies of scale when purchasing or selling securities issued by businesses and governments.

A consumer lending function is performed by each of the following FIs EXCEPT

The qualified thrift lender test is designed to ensure that

Why Are Financial Institutions Special

Financial Services: Finance Companies

Financial Services: Securities Firms and Investment Banks

Financial Services: Mutual Fund and Hedge Fund Companies

Financial Services: Insurance Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters

Exam 2: Financial Services: Depository Institutions

Customer loans are classified on a DI's balance sheet as

The primary objective of the Riegle-Neal Act (1994)was to ease branching across state lines by banks.

Depository institutions (DIs)play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy primarily because

Compared to households,FIs often have economies of scale when purchasing or selling securities issued by businesses and governments.

A consumer lending function is performed by each of the following FIs EXCEPT

The qualified thrift lender test is designed to ensure that

Why Are Financial Institutions Special

Financial Services: Finance Companies

Financial Services: Securities Firms and Investment Banks

Financial Services: Mutual Fund and Hedge Fund Companies

Financial Services: Insurance Companies

Risks of Financial Institutions

Interest Rate Risk I

Interest Rate Risk II

Credit Risk: Individual Loan Risk

Credit Risk: Loan Portfolio and Concentration Risk

Liquidity Risk

Foreign Exchange Risk

Sovereign Risk

Market Risk

Off-Balance-Sheet Risk

Technology and Other Operational Risks

Liability and Liquidity Management

Deposit Insurance and Other Liability Guarantees

Capital Adequacy

Product and Geographic Expansion

Futures and Forwards

Options, Caps, Floors, and Collars

Swaps

Loan Sales

Securitization

Filters