Exam 2: Financial Services: Depository Institutions

The standardization of many FI products is evidence of the inefficient institutionalization by financial markets and the mechanisms through which these products trade.

Negotiable certificates of deposits are differentiated from fixed time deposits by their negotiability and active trading in the secondary markets.

Which of the following dominates the loan portfolios of commercial banks with assets less than one billion dollars?

A significant advantage for credit unions in competing with commercial banks is the tax-exempt status that has been granted to credit unions.

All commercial banks must be members of the Federal Reserve System.

Which of the following observations concerning credit unions is NOT true?

All credit unions are nationally chartered and regulated by the National Credit Union Administration.

Which of the following repealed the 1933 Glass-Steagall barriers between commercial banking,insurance,and investment banking?

For the following problems, choose among the following major banking laws. -This legislation permits bank holding companies to acquire banks in other states.

Of the ten largest banks in the world at the beginning of 2015,how many were U.S.banks?

The charter values of FIs will be higher if regulators

Regulator forbearance is a policy of allowing economically insolvent FIs to continue in operation.

The passage of legislation to prevent discrimination in lending is an example of regulation to protect investors.

In general,the banking industry performed at higher levels of profitability in the decade of the 1990s than the decade of the 1980s.

The adverse effects on the economy that can occur because of major disturbances to the special functions or services provided by financial institutions are negative externalities.

The origination of a home mortgage loan is considered to be a

Which of the following statements is FALSE?

Savings associations and savings banks are chartered and regulated by the Federal Reserve Bank.

The asset transformation function of an FI is to issue primary financial claims to corporations while purchasing secondary claims issued by households and other investors.

Investment companies are successful in attracting business away from banks and insurance companies primarily because they