Exam 2: Financial Services: Depository Institutions

Currently, federal standards do not allow investment banks to covert to a bank holding company structure.

Choose among the following major banking laws. -Provided for state regulation of insurance.

Large money center banks are often primary dealers in the U.S. Treasury markets.

A primary advantage for a depository institution of belonging to the Federal Reserve System is

The strong performance of commercial banks during the decade before 2007 was due to

Credit Unions were generally less affected than other depository institutions by the recent financial crisis because

The largest asset class on credit unions' balance sheet as of September 30, 2012 was

This broad class of loans constitutes the highest percentage of total assets for all U.S. commercial banks as of the end of 2012.

In recent years, the number of commercial banks in the U.S. has been increasing.

The Financial Services Modernization Act of 1999 allows commercial banking activities and securities underwriting to operate simultaneously under the same ownership structure.

In terms of total assets, commercial banks with under $1 billion in assets have become a larger segment of the industry in recent years.

Choose among the following major banking laws. -This legislation phased out Regulation Q ceilings on deposit interest rates.

Choose among the following major banking laws. -This legislation limited the use of "too big to fail" bailouts.

The credit union industry avoided much of the financial distress of the 1980s because of the short maturity and relatively lower credit risk of their assets.

The securitization of mortgages involves the pooling of mortgage loans for sale in the financial markets.

Since 1990, commercial banks decreased the proportion of business loans and increased the proportion of mortgages in their portfolios.

Commercial banks have had limited power to underwrite corporate securities since 1987.

The number of savings associations has been declining since 1990.

Although growing, the notional value of bank OBS activities remained less than the value of on-balance-sheet activities at the end of 2012.

Savings institutions enjoyed record profitability during the late 1990s and early 2000s.