Exam 19: Banking Industry: Structure and Competition

Because of the abuses by state banks and the clear need for a central bank to help the federal government raise funds during the War of 1812, Congress created the

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.

The regulatory system that has evolved in the United States whereby banks are regulated at the state level, the national level, or both, is known as a

The Riegle-Neal Act of 1994

So-called fallen angels differ from junk bonds in that

Major differences between the United States and Japanese banking systems include:

The entry of Sears, AT&T, and GM into the credit card business is an indication of

Before 1863,

Checking accounts that earn interest (such as NOW accounts)were not available until ________.

Bank holding companies are regulated by the FDIC.

Reserve requirements that force banks to keep a certain fraction of their deposits as reserves and restrictions on the interest rates that can be paid on deposits have been the major forces behind financial innovation.

Unlike commercial banks, S&Ls can only be chartered by the federal government.

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

A firm issuing credit cards earns income from

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

Explain what happened to the large, free-standing investment banks as a result of the 2007-2009 financial crisis.

Today the United States has a dual banking system in which banks supervised by the ________ and by the ________ operate side by side.

The Federal Reserve's Regulation Q

Describe Edge Act corporations, international banking facilities, and the structure of foreign banks in the United States.

The most important developments that have reduced banks' income advantages in the past twenty years include