Exam 19: Banking Industry: Structure and Competition

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

A form of electronic money used on the Internet to pay for goods and services is

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.

Which of the following is not a financial innovation stimulated by information technology?

Since the passage of the International Banking Act of 1978, the competitive advantage enjoyed by foreign banks has been ________.

In a ________ banking system, commercial banks provide a full range of banking, securities, and insurance services, all within a single legal entity.

Before 1863,

Disintermediation occurs when funds are deposited into banks and lent to borrowers.

The most significant change in the economic environment that changed the demand for financial products since 1970 has been

What are the reasons for the decline of traditional banking?

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

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

In the usual GNMA pass-through security, the ________ has direct ownership of a pro-rata share of the portfolio of mortgage loans.

Which of the following is an example of a financial innovation introduced to avoid regulations?

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

The prohibition against banks underwriting corporate securities and engaging in brokerage, real estate, and insurance activities was repealed by the

Bank holding companies are regulated by the FDIC.

The bundling of mortgages into a saleable security (usually for large institutional investors)is called ________.

So-called fallen angels differ from junk bonds in that

With the creation of the Federal Deposit Insurance Corporation,