Exam 19: Banking Industry: Structure and Competition

The future structure of the U.S.banking industry is likely to be characterized by many more smaller banks,as customers demand neighborhood banks operated by people they know personally.

Adjustable-rate mortgages

In recent years,commercial banks have been allowed to

The existence of large numbers of banks in the United States indicates the presence of vigorous competition.

In 1975,financial institutions developed financial derivatives that included ________.

Although federal banking legislation in the 1860s attempted to eliminate state-chartered banks by imposing a prohibitive tax on banknotes,these banks have been able to stay in business by

The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains,in part,the passage of

The McFadden Act of 1927

A firm issuing credit cards earns income from

A bank with a large credit-card customer base can market other financial products to these customers at a low cost.This is an example of

Before 1863,

With the creation of the Federal Deposit Insurance Corporation,member banks of the Federal Reserve System ________ to purchase FDIC insurance for their depositors,while nonmember commercial banks ________ to buy deposit insurance.

Bank failures and mergers have caused the number of commercial banks in the U.S.to decline from around ________ in the 1970s to below ________ today.

Examples of financial services that became practical realities as the result of new computer technology include

The main center of the Eurodollar market is ________.